This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 75

Author:(Committee on Budget)

As Amended Ver:June 22, 2020

Majority vote. Budget Bill Appropriations Takes Effect Immediately

SUMMARY:

Amends the 2019 budget act to address unanticipated expenditures that occurred during the 2019-20 fiscal year.

The Senate Amendments:

Deletes the previous versions of this bill and instead:

1. Appropriates a total of $119.7 million General Fund in various departments to address unidentified costs incurred during the current fiscal year.
2. Appropriates $4.8 million General Fund to augment the 2019 Budget Act for the California Department of Forestry and Fire Protection (CAL FIRE). The amount includes the cost of back pay of cash–in–lieu–of benefits pursuant to a settlement with Bargaining Unit 8. The Ninth Circuit Court of Appeals ruled that "cash–in–lieu of benefits" payouts should be included in the base salary amounts that are used to calculate employees' overtime compensation. Accordingly, CAL FIRE and California Department of Human Resources (CalHR) reached a settlement with Bargaining Unit 8 to provide back pay to affected employees. The $4.8 million settlement agreement covers the calculated cost of planned and unplanned overtime hours for the period of November 2015 to June 2018. According to the Department of Finance, the overtime pay calculation has been corrected and CAL FIRE will absorb the additional incremental cost associated with this calculation change within its existing baseline overtime budget.
3. Appropriates $9.702 million General Fund to augment the 2019 Budget Act for the California Department of Corrections and Rehabilitation (CDCR) to conduct remediation work to control Legionella bacteria at the California Health Care Facility (CHCF) in Stockton. In April 2019, two inmates housed at CHCF tested positive for exposure to Legionella bacteria. One inmate later passed away and a post–death analysis confirmed the presence of Legionella in the patient. CDCR consulted with the United State Centers for Disease Control, the California Department of Public Health and a contracted environmental consultant with water quality expertise. CDCR declared an emergency in accordance with Public Contract Code Section 1102 and took action to control the Legionella bacteria at CHCF. The costs included $8.5 million for operating expenses and equipment including shower trailer rentals, in–line water filters, a water testing contract, chlorination equipment rental, bottled water and other miscellaneous supplies for water fixture flushing and other maintenance activities. An additional $1.2 million was spent on overtime costs for plant operations staff and custody staff.
4. Appropriates $11.7 million General Fund to augment the 2019 Budget Act for the Department of General Services (DGS) to conduct ongoing response and recovery operations related to the 2018 Camp Fire in Butte County. Most of the department's costs were reimbursed through Government Code Section 8690.6, the Disaster Response–Emergency Operations Account (DREOA) and federal reimbursements from FEMA. However, due to the severity of the fire and the prolonged nature of the response and recovery efforts, DGS incurred additional costs that crossed fiscal years. The $11.7 includes contract work for relief activities that continued into 2019 including janitorial services, security services, RVs, canopies and tents, water truck services, tank and grey water removal services, heating, propane tank and delivery services, and standby medical and airport services.
5. Appropriates $40.3 million General Fund to augment the 2019 Budget Act for the California Department of Food and Agriculture (CDFA) with an extended encumbrance to June 30, 2021. There are 77 fairs in California. Of those, 53 fairs are state–affiliated and have state civil servant employees. Due to the COVID–19 pandemic and the inability to conduct revenue–generating activities, many fairs, if not all, are facing significant financial difficulty. According to the Administration, all of the fairs are developing financial plans which may include laying off employees. The state expects the layoff process to begin in June 2020. The $40.3 million appropriated in this item is the estimated cost of employee compensation for the fairs that do not have sufficient funds or reserves to cover employee compensation costs during the layoff process. Under the projection, fair managers were expected to be laid off immediately. The remaining state civil servants are expected to go through the layoff process, incurring approximately six months of payroll expense. According to the Administration, fairs have lost approximately $98 million in revenue between March and June 2020. As a result, fairs are either using their reserves to pay their employees or are having to lay off staff or a combination of both. In the end, the state is financially responsible for the employee compensation of the state civil servants and the $40.3 million is the estimated cost of that obligation.
6. Appropriates $17,000 General Fund to augment the 2019 Budget Act to reimburse Mariposa County for the costs related to the homicide case of "People v. Cary Stayner." This claim has been approved by the State Controller, pursuant to Government Code, Division 3, Part 6, Chapter 3 (commencing with Section 15200), which allows qualified counties to seek state reimbursement for homicide trial costs.
7. Appropriates $48.9 million General Fund to augment the 2019 Budget Act for multiple departments that incurred costs associated with the 2019 wildfires and the public safety power shutoffs (PSPS). The Governor issued an emergency proclamation on October 25, 2019 for the counties of Sonoma and Los Angeles in response to the Kincade and Tick Fires, respectively. In addition, the Governor issued another emergency proclamation on October 27, 2019, in anticipation of the public safety power shutoffs initiated by the Investor–Owned Utilities due to the extreme fire and wind conditions. As a result, DOF directed all departments to report costs associated with the two emergencies.
   1. This bill augments the following departments for costs incurred for the 2019 wildfires:
      1. Department of Transportation – $6.8 million for state highway system asset repair and traffic controls during the evacuations.
      2. Department of the California Highway Patrol – $1.286 million for traffic management overtime costs related to the wildfires.
      3. Department of Motor Vehicles – $19,000 for customer support to assist in replacement of important government records, claims for insurance, and other purposes related to losses suffered from the wildfires.
      4. Department of Parks and Recreation – $58,000 for the mobilization and deployment for fire response coordination and overtime costs for assistance with patrols for areas impacted by the fires.
      5. Emergency Medical Services Authority – $389,000 for the deployment of the California Medical Assistance Team (CalMAT) to provide care to patients and state personnel (e.g. Firefighters) and overtime costs for staffing and logistical support.
      6. Department of Social Services – $83,000 for the State Emergency Food Reserve.
      7. Department of Corrections and Rehabilitation – $122,000 for wildfire suppression activities, including the use of CDCR state employee strike teams and equipment for both direct wildfire suppression and structure protection.
      8. Department of General Services – $6.457 million for overtime for emergency staff, laundry and shower units, sanitation rentals and transport, bio–cleaning for shelters, water and fuel infrastructure, comfort kits, unarmed security services, and other equipment and commodities.
      9. California Military Department – $2.979 million for the deployment of staff and resources to assist with evacuations, patrols, and providing/distributing life sustaining goods to populations affected/displaced by the fires.
   2. This bill augments the following department costs incurred for the 2019 public safety power shutoffs:
      1. Department of Social Services – $6 million for county Adult Protective Services social workers to conduct wellness checks of seniors during the public safety power shutoff and resources to reimburse and replenish the State Emergency Food Reserve, which provides shelf stable and ready to eat food for immediate use in response to emergencies.
   3. This bill augments the following department for the costs incurred for 2019 wildfires and public safety power shutoffs:
      1. Office of Emergency Services (Cal OES) – $24.717 million
         1. The PSPS related costs were for the State Operations Center and regional response activity costs incurred by Cal OES for activations in response to the power shutoff events.
         2. Cal OES' wildfire costs were made up of two components: (a) reimbursing local California fire companies for incident responses that were directed by Cal OES, but were outside of the mutual aid agreements; and (b) reimbursing the costs for out of state engines that provided mutual aid through the Emergency Management Assistance Compact (EMAC). Oregon, Washington, Montana, Utah, New Mexico, and Idaho each responded – sending a combined total of 150 engines to assist the state in suppressing the fires.
8. Appropriates $2.362 million General Fund to augment the 2019 Budget Act for the California Military Department for activation of the National Guard to assist local agencies in responding to the protests and civil unrest that began on May 30, 2020. Governor Newsom declared a state of emergency for Los Angeles City and County, allowing the cost incurred for the National Guard deployment in the Los Angeles region to be reimbursed by the Disaster Response-Emergency Operations Account (DREOA). The $2.362 million from the General Fund covers the cost of approximately 2,500 National Guard that assisted other localities around the state.
9. Appropriates $1.946 million General Fund to augment the 2019 Budget Act for the Department of General Services for costs incurred in response to the protests and civil unrest that began on May 30, 2020. Specifically, $908,000 was incurred for protecting and repairs to state facilities that were damaged during the protests. An additional $1 million was incurred for supplies and support for the National Guard, including meal services, lighting towers, propane and diesel supplies, and hygienic services, and other items.

COMMENTS:

The bill, the 2020 Supplemental Appropriations Bill, or the Deficiency Bill, is part of the 2020 budget package. The expenditures are already accounted for in the scoring of the 2020 budget and represent expenditures that were unanticipated throughout the current fiscal year. Enacting this bill will allow the state to settle up its books for the 2019-20 fiscal year, which ends on June 30, 2020.

According to the Author:

The deficiency bill is a routine component of the annual budget package and allows the State to close out the books for the current fiscal year.

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

This bill has a total cost of $119.7 million General Fund, which is already accounted for in the overall 2020 budget package.

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 22, 2020

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0003123

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 75 Hearing Date: June 12, 2020

Subject: Budget Act of 2019: Augmentation

Summary:

This bill makes a supplemental appropriation to the Budget Act of 2019.

Background: Specifically, this bill appropriates $115,419,000 General Fund to multiple state agencies for costs incurred during the 2019-2020 fiscal year.

Proposed Law:

1. Appropriates $4.8 million General Fund to augment the 2019 Budget Act for the California Department of Forestry and Fire Protection (CAL FIRE). The amount includes the cost of back pay of cash-in-lieu-of benefits pursuant to a settlement with Bargaining Unit 8. The Ninth Circuit Court of Appeals ruled that “cash-in-lieu of benefits” payouts should be included in the base salary amounts that are used to calculate employees’ overtime compensation. Accordingly, CAL FIRE and California Department of Human Resources (CalHR) reached a settlement with Bargaining Unit 8 to provide back pay to affected employees. The $4.8 million settlement agreement covers the calculated cost of planned and unplanned overtime hours for the period of November 2015 to June 2018. According to the Department of Finance, the overtime pay calculation has been corrected and CAL FIRE will absorb the additional incremental cost associated with this calculation change within its existing baseline overtime budget.
2. Appropriates $9.702 million General Fund to augment the 2019 Budget Act for the California Department of Corrections and Rehabilitation (CDCR) to conduct remediation work to control Legionella bacteria at the California Health Care Facility (CHCF) in Stockton. In April 2019, two inmates housed at CHCF tested positive for exposure to Legionella bacteria. One inmate passed away and a post-death analysis confirmed the presence of Legionella in the patient. CDCR consulted with the United State Centers for Disease Control, the California Department of Public Health and a contracted environmental consultant with water quality expertise. CDCR declared an emergency in accordance with Public Contract Code section 1102 and took action to control the Legionella bacteria at CHCF. The costs included $8.5 million for operating expenses and equipment including shower trailer rentals, in-line water filters, a water testing contract, chlorination equipment rental, bottled water and other miscellaneous supplies for water fixture flushing and other maintenance activities. An additional cost of $1.2 million was incurred for overtime for plant operations staff and custody staff.
3. Appropriates $11.7 million General Fund to augment the 2019 Budget Act for the Department of General Services (DGS) to conduct ongoing response and recovery operations related to the 2018 Camp Fire in Butte County. Most of department’s costs were reimbursed through Government Code section 8690.6, the Disaster Response-Emergency Operations Account (DREOA) and federal reimbursements from FEMA. However, due to the severity of the fire and the prolonged nature of the response and recovery efforts, DGS incurred additional costs that crossed fiscal years. The $11.7 million includes contract work for relief activities that continued into 2019 including janitorial services, security services, RVs, canopies and tents, water truck services, tank and grey water removal services, heating, propane tank and delivery services, and standby medical and airport services.
4. Appropriates $40.3 million General Fund to augment the 2019 Budget Act for the California Department of Food and Agriculture (CDFA) with an extended encumbrance to June 30, 2021. There are 77 fairs in California. Of those, 53 fairs are state-affiliated and have state civil servant employees. Due to the COVID-19 pandemic and the inability to conduct revenue-generating activities, many fairs, if not all, are facing significant financial difficulty. According to the Administration, to address the loss of revenue, all of the fairs are developing financial plans which may include laying off employees. The state expects the layoff process to begin in June 2020. The $40.3 million appropriated in this item is the estimated cost of employee compensation for the fairs that do not have sufficient funds or reserves to cover employee compensation costs during the layoff process. The state civil servants are expected to go through the layoff process, incurring approximately 6 months of payroll expense. According to the Administration, fairs have lost approximately $98 million in revenue between March and June 2020. As a result, fairs are either using their reserves to pay their employees or are having to layoff staff or a combination of both. In the end, the state is financially responsible for the employee compensation of the state civil servants and the $40.3 million is the estimated cost of that obligation.
5. Appropriates $17,000 General Fund to augment the 2019 Budget Act to reimburse Mariposa County for the costs related to the homicide case of “People v. Cary Stayner.” This claim has been approved by the State Controller, pursuant to Chapter 3 (commencing with Section 15200) of Part 6 of Division 3 of Title of the Government Code, which allows qualified counties to seek state reimbursement for homicide trial costs.
6. Appropriates $48.9 million General Fund to augment the 2019 Budget Act for multiple departments that incurred costs associated with the 2019 wildfires and the public safety power shutoffs (PSPS). The Governor issued an emergency proclamation on October 25, 2019 for the counties of Sonoma and Los Angeles in response to the Kincade and Tick Fires, respectively. In addition, the Governor issued another emergency proclamation on October 27, 2019, in anticipation of the public safety power shutoffs initiated by the Investor-Owned Utilities due to the extreme fire and wind conditions. As a result, Department of Finance directed all departments to report costs associated with the two emergencies.
   1. This bill augments the following departments for costs incurred for the 2019 wildfires:
      1. Department of Transportation - $6.8 million for off-state highway system asset repair and traffic controls during the evacuations.
      2. Department of the California Highway Patrol - $1.286 million for traffic management overtime costs related to the wildfires.
      3. Department of Motor Vehicles - $19,000 for customer support to assist in replacement of important government records, claims for insurance, and other purposes related to losses suffered from the wildfires.
      4. Department of Parks and Recreation - $58,000 for the mobilization and deployment for fire response coordination and overtime costs for assistance with patrols for areas impacted by the fires.
      5. Emergency Medical Services Authority - $389,000 for the deployment of the California Medical Assistance Team (CalMAT) to provide care to patients and state personnel (e.g. firefighters) and overtime costs for staffing and logistical support.
      6. Department of Social Services - $83,000 for the State Emergency Food Reserve.
      7. Department of Corrections and Rehabilitation - $122,000 for wildfire suppression activities, including the use of CDCR state employee strike teams and equipment for both direct wildfire suppression and structure protection.
      8. Department of General Services - $6.457 million for overtime for emergency staff, laundry and shower units, sanitation rentals and transport, bio-cleaning for shelters, water and fuel infrastructure, comfort kits, unarmed security services, and other equipment and commodities.
      9. California Military Department - $2.979 million for the deployment of staff and resources to assist with evacuations, patrols, and providing/distributing life sustaining goods to populations affected/displaced by the fires.
   2. This bill augments the following department for the costs incurred for the 2019 public safety power shutoffs:
      1. Department of Social Services - $6 million for county Adult Protective Services social workers to conduct wellness checks of seniors during the public safety power shutoff and resources to reimburse and replenish the State Emergency Food Reserve, which provides shelf stable and ready to eat food for immediate use in response to emergencies.
   3. This bill augments the following department for the costs incurred for 2019 wildfires and public safety power shutoffs:
      1. Office of Emergency Services (Cal OES) - $24.717 million
         1. The PSPS-related costs were for the State Operations Center and regional response activity costs incurred by Cal OES for activations in response to the power shutoff events.
         2. Cal OES’ wildfire costs were made up of two components: (1) reimbursing local California fire companies for incident responses that were directed by Cal OES, but were outside of the mutual aid agreements; and (2) reimbursing the costs for out of state engines that provided mutual aid through the Emergency Management Assistance Compact (EMAC). Oregon, Washington, Montana, Utah, New Mexico, and Idaho each responded—sending a combined total of 150 engines to assist the state in suppressing the fires.
7. Appropriates $2.362 million General Fund to augment the 2019 Budget Act for the California Military Department for activation of the National Guard to assist local agencies in responding to the protests and civil unrest that began on May 30, 2020. Governor Newsom declared a state of emergency for Los Angeles City and County, allowing the cost incurred for the National Guard deployment in the Los Angeles region to be reimbursed by the Disaster Response-Emergency Operations Account (DREOA). The $2.362 million from the General Fund covers the cost of approximately 2,500 National Guard that assisted other localities around the state.
8. Appropriates $1.946 million General Fund to augment the 2019 Budget Act for the Department of General Services for costs incurred in response to the protests and civil unrest that began on May 30, 2020. Specifically, $908,000 was for costs associated with protecting and repairing state facilities that were damaged during the protests. An additional $1 million was incurred for supplies and support for the National Guard, including meal services, lighting towers, propane and diesel supplies, and hygienic services, and other items.

Fiscal Effect:

Appropriates $115,419,000 General Fund to address shortfalls in the Budget Act of 2019. Balances of the appropriated funds as of June 30, 2020 as specified, would revert to the General Fund except as provided for the augmentation for CDFA.

Support:

None on file.

Opposed:

None on file.

-- END --

 THIRD READING  

Bill No: AB 75

Author: Committee on Budget

Amended: 6/22/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 17-0, 6/12/20

AYES: Mitchell, Nielsen, Beall, Caballero, Dahle, Durazo, Leyva, McGuire, Melendez, Monning, Moorlach, Morrell, Pan, Roth, Skinner, Stern, Wieckowski

NO VOTE RECORDED: Hurtado

SUBJECT: Budget Act of 2019: augmentation

SOURCE: Author

DIGEST:

This bill makes a supplemental appropriation to the Budget Act of 2019.

Senate Floor Amendments of 6/22/20 add two additional current year appropriations requested by the Administration. The augmentations added by these amendments cover the current year costs associated with the state’s response to the civil unrest and protests earlier this month.

ANALYSIS: This bill makes a supplemental appropriation to the Budget Act of 2019. Specifically, this bill appropriates $119,727,000 General Fund to multiple state agencies for costs incurred during the 2019-2020 fiscal year.

1. Appropriates $4.8 million General Fund to augment the 2019 Budget Act for the California Department of Forestry and Fire Protection (CAL FIRE). The amount includes the cost of back pay of cash-in-lieu-of benefits pursuant to a settlement with Bargaining Unit 8. The Ninth Circuit Court of Appeals ruled that “cash-in-lieu of benefits” payouts should be included in the base salary amounts that are used to calculate employees’ overtime compensation. Accordingly, CAL FIRE and California Department of Human Resources (CalHR) reached a settlement with Bargaining Unit 8 to provide back pay to affected employees. The $4.8 million settlement agreement covers the calculated cost of planned and unplanned overtime hours for the period of November 2015 to June 2018. According to the Department of Finance, the overtime pay calculation has been corrected and CAL FIRE will absorb the additional incremental cost associated with this calculation change within its existing baseline overtime budget.
2. Appropriates $9.702 million General Fund to augment the 2019 Budget Act for the California Department of Corrections and Rehabilitation (CDCR) to conduct remediation work to control Legionella bacteria at the California Health Care Facility (CHCF) in Stockton. In April 2019, two inmates housed at CHCF tested positive for exposure to Legionella bacteria. One inmate passed away and a post-death analysis confirmed the presence of Legionella in the patient. CDCR consulted with the United State Centers for Disease Control, the California Department of Public Health and a contracted environmental consultant with water quality expertise. CDCR declared an emergency in accordance with Public Contract Code section 1102 and took action to control the Legionella bacteria at CHCF. The costs included $8.5 million for operating expenses and equipment including shower trailer rentals, in-line water filters, a water testing contract, chlorination equipment rental, bottled water and other miscellaneous supplies for water fixture flushing and other maintenance activities. An additional cost of $1.2 million was incurred for overtime for plant operations staff and custody staff.
3. Appropriates $11.7 million General Fund to augment the 2019 Budget Act for the Department of General Services (DGS) to conduct ongoing response and recovery operations related to the 2018 Camp Fire in Butte County. Most of department’s costs were reimbursed through Government Code section 8690.6, the Disaster Response-Emergency Operations Account (DREOA) and federal reimbursements from FEMA. However, due to the severity of the fire and the prolonged nature of the response and recovery efforts, DGS incurred additional costs that crossed fiscal years. The $11.7 million includes contract work for relief activities that continued into 2019 including janitorial services, security services, RVs, canopies and tents, water truck services, tank and grey water removal services, heating, propane tank and delivery services, and standby medical and airport services.
4. Appropriates $40.3 million General Fund to augment the 2019 Budget Act for the California Department of Food and Agriculture (CDFA) with an extended encumbrance to June 30, 2021. There are 77 fairs in California. Of those, 53 fairs are state-affiliated and have state civil servant employees. Due to the COVID-19 pandemic and the inability to conduct revenue-generating activities, many fairs, if not all, are facing significant financial difficulty. According to the Administration, to address the loss of revenue, all of the fairs are developing financial plans which may include laying off employees. The state expects the layoff process to begin in June 2020. The $40.3 million appropriated in this item is the estimated cost of employee compensation for the fairs that do not have sufficient funds or reserves to cover employee compensation costs during the layoff process. Under the projection, fair managers were expected to be laid off immediately. The remaining state civil servants are expected to go through the layoff process, incurring approximately 6 months of payroll expense. According to the Administration, fairs have lost approximately $98 million in revenue between March and June 2020. As a result, fairs are either using their reserves to pay their employees or are having to layoff staff or a combination of both. In the end, the state is financially responsible for the employee compensation of the state civil servants and the $40.3 million is the estimated cost of that obligation.
5. Appropriates $17,000 General Fund to augment the 2019 Budget Act to reimburse Mariposa County for the costs related to the homicide case of “People v. Cary Stayner.” This claim has been approved by the State Controller, pursuant to Chapter 3 (commencing with Section 15200) of Part 6 of Division 3 of Title of the Government Code, which allows qualified counties to seek state reimbursement for homicide trial costs.
6. Appropriates $48.9 million General Fund to augment the 2019 Budget Act for multiple departments that incurred costs associated with the 2019 wildfires and the public safety power shutoffs (PSPS). The Governor issued an emergency proclamation on October 25, 2019 for the counties of Sonoma and Los Angeles in response to the Kincade and Tick Fires, respectively. In addition, the Governor issued another emergency proclamation on October 27, 2019, in anticipation of the public safety power shutoffs initiated by the Investor-Owned Utilities due to the extreme fire and wind conditions. As a result, Department of Finance directed all departments to report costs associated with the two emergencies.
   1. This bill augments the following departments for costs incurred for the 2019 wildfires:
      1. Department of Transportation - $6.8 million for off-state highway system asset repair and traffic controls during the evacuations.
      2. Department of the California Highway Patrol - $1.286 million for traffic management overtime costs related to the wildfires.
      3. Department of Motor Vehicles - $19,000 for customer support to assist in replacement of important government records, claims for insurance, and other purposes related to losses suffered from the wildfires.
      4. Department of Parks and Recreation - $58,000 for the mobilization and deployment for fire response coordination and overtime costs for assistance with patrols for areas impacted by the fires.
      5. Emergency Medical Services Authority - $389,000 for the deployment of the California Medical Assistance Team (CalMAT) to provide care to patients and state personnel (e.g. firefighters) and overtime costs for staffing and logistical support.
      6. Department of Social Services - $83,000 for the State Emergency Food Reserve.
      7. Department of Corrections and Rehabilitation - $122,000 for wildfire suppression activities, including the use of CDCR state employee strike teams and equipment for both direct wildfire suppression and structure protection.
      8. Department of General Services - $6.457 million for overtime for emergency staff, laundry and shower units, sanitation rentals and transport, bio-cleaning for shelters, water and fuel infrastructure, comfort kits, unarmed security services, and other equipment and commodities.
      9. California Military Department - $2.979 million for the deployment of staff and resources to assist with evacuations, patrols, and providing/distributing life sustaining goods to populations affected/displaced by the fires.
   2. This bill augments the following department for the costs incurred for the 2019 public safety power shutoffs:
      1. Department of Social Services - $6 million for county Adult Protective Services social workers to conduct wellness checks of seniors during the public safety power shutoff and resources to reimburse and replenish the State Emergency Food Reserve, which provides shelf stable and ready to eat food for immediate use in response to emergencies.
   3. This bill augments the following department for the costs incurred for 2019 wildfires and public safety power shutoffs:
      1. Office of Emergency Services (Cal OES) - $24.717 million
         1. The PSPS-related costs were for the State Operations Center and regional response activity costs incurred by Cal OES for activations in response to the power shutoff events.
         2. Cal OES’ wildfire costs were made up of two components: (1) reimbursing local California fire companies for incident responses that were directed by Cal OES, but were outside of the mutual aid agreements; and (2) reimbursing the costs for out of state engines that provided mutual aid through the Emergency Management Assistance Compact (EMAC). Oregon, Washington, Montana, Utah, New Mexico, and Idaho each responded—sending a combined total of 150 engines to assist the state in suppressing the fires.
7. Appropriates $2.362 million General Fund to augment the 2019 Budget Act for the California Military Department for activation of the National Guard to assist local agencies in responding to the protests and civil unrest that began on May 30, 2020. Governor Newsom declared a state of emergency for Los Angeles City and County, allowing the cost incurred for the National Guard deployment in the Los Angeles region to be reimbursed by the Disaster Response-Emergency Operations Account (DREOA). The $2.362 million from the General Fund covers the cost of approximately 2,500 National Guard that assisted other localities around the state.
8. Appropriates $1.946 million General Fund to augment the 2019 Budget Act for the Department of General Services for costs incurred in response to the protests and civil unrest that began on May 30, 2020. Specifically, $908,000 was for costs associated with protecting and repairing state facilities that were damaged during the protests. An additional $1 million was incurred for supplies and support for the National Guard, including meal services, lighting towers, propane and diesel supplies, and hygienic services, and other items.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget and Fiscal Review Committee, this bill appropriates $119,727,000 General Fund to address shortfalls in the Budget Act of 2019. Balances of the appropriated funds as of June 30, 2020 as specified, would revert to the General Fund except as provided for the augmentation for CDFA.

SUPPORT: (Verified 6/22/20)

None received

OPPOSITION: (Verified 6/22/20)

None received

Prepared by: Hans Hemann / B. & F.R. / 916-651-4103

6/23/20 17:38:39

**** END ****

 THIRD READING  

Bill No: AB 75

Author: Committee on Budget

Amended: 6/10/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 17-0, 6/12/20

AYES: Mitchell, Nielsen, Beall, Caballero, Dahle, Durazo, Leyva, McGuire, Melendez, Monning, Moorlach, Morrell, Pan, Roth, Skinner, Stern, Wieckowski

NO VOTE RECORDED: Hurtado

SUBJECT: Budget Act of 2019: augmentation

SOURCE: Author

DIGEST:

This bill makes a supplemental appropriation to the Budget Act of 2019.

ANALYSIS: This bill makes a supplemental appropriation to the Budget Act of 2019. Specifically, this bill appropriates $115,419,000 General Fund to multiple state agencies for costs incurred during the 2019-2020 fiscal year.

1. Appropriates $4.8 million General Fund to augment the 2019 Budget Act for the California Department of Forestry and Fire Protection (CAL FIRE). The amount includes the cost of back pay of cash-in-lieu-of benefits pursuant to a settlement with Bargaining Unit 8. The Ninth Circuit Court of Appeals ruled that “cash-in-lieu of benefits” payouts should be included in the base salary amounts that are used to calculate employees’ overtime compensation. Accordingly, CAL FIRE and California Department of Human Resources (CalHR) reached a settlement with Bargaining Unit 8 to provide back pay to affected employees. The $4.8 million settlement agreement covers the calculated cost of planned and unplanned overtime hours for the period of November 2015 to June 2018. According to the Department of Finance, the overtime pay calculation has been corrected and CAL FIRE will absorb the additional incremental cost associated with this calculation change within its existing baseline overtime budget.
2. Appropriates $9.702 million General Fund to augment the 2019 Budget Act for the California Department of Corrections and Rehabilitation (CDCR) to conduct remediation work to control Legionella bacteria at the California Health Care Facility (CHCF) in Stockton. In April 2019, two inmates housed at CHCF tested positive for exposure to Legionella bacteria. One inmate passed away and a post-death analysis confirmed the presence of Legionella in the patient. CDCR consulted with the United State Centers for Disease Control, the California Department of Public Health and a contracted environmental consultant with water quality expertise. CDCR declared an emergency in accordance with Public Contract Code section 1102 and took action to control the Legionella bacteria at CHCF. The costs included $8.5 million for operating expenses and equipment including shower trailer rentals, in-line water filters, a water testing contract, chlorination equipment rental, bottled water and other miscellaneous supplies for water fixture flushing and other maintenance activities. An additional cost of $1.2 million was incurred for overtime for plant operations staff and custody staff.
3. Appropriates $11.7 million General Fund to augment the 2019 Budget Act for the Department of General Services (DGS) to conduct ongoing response and recovery operations related to the 2018 Camp Fire in Butte County. Most of department’s costs were reimbursed through Government Code section 8690.6, the Disaster Response-Emergency Operations Account (DREOA) and federal reimbursements from FEMA. However, due to the severity of the fire and the prolonged nature of the response and recovery efforts, DGS incurred additional costs that crossed fiscal years. The $11.7 million includes contract work for relief activities that continued into 2019 including janitorial services, security services, RVs, canopies and tents, water truck services, tank and grey water removal services, heating, propane tank and delivery services, and standby medical and airport services.
4. Appropriates $40.3 million General Fund to augment the 2019 Budget Act for the California Department of Food and Agriculture (CDFA) with an extended encumbrance to June 30, 2021. There are 77 fairs in California. Of those, 53 fairs are state-affiliated and have state civil servant employees. Due to the COVID-19 pandemic and the inability to conduct revenue-generating activities, many fairs, if not all, are facing significant financial difficulty. According to the Administration, to address the loss of revenue, all of the fairs are developing financial plans which may include laying off employees. The state expects the layoff process to begin in June 2020. The $40.3 million appropriated in this item is the estimated cost of employee compensation for the fairs that do not have sufficient funds or reserves to cover employee compensation costs during the layoff process. Under the projection, fair managers were expected to be laid off immediately. The remaining state civil servants are expected to go through the layoff process, incurring approximately 6 months of payroll expense. According to the Administration, fairs have lost approximately $98 million in revenue between March and June 2020. As a result, fairs are either using their reserves to pay their employees or are having to layoff staff or a combination of both. In the end, the state is financially responsible for the employee compensation of the state civil servants and the $40.3 million is the estimated cost of that obligation.
5. Appropriates $17,000 General Fund to augment the 2019 Budget Act to reimburse Mariposa County for the costs related to the homicide case of “People v. Cary Stayner.” This claim has been approved by the State Controller, pursuant to Chapter 3 (commencing with Section 15200) of Part 6 of Division 3 of Title of the Government Code, which allows qualified counties to seek state reimbursement for homicide trial costs.
6. Appropriates $48.9 million General Fund to augment the 2019 Budget Act for multiple departments that incurred costs associated with the 2019 wildfires and the public safety power shutoffs (PSPS). The Governor issued an emergency proclamation on October 25, 2019 for the counties of Sonoma and Los Angeles in response to the Kincade and Tick Fires, respectively. In addition, the Governor issued another emergency proclamation on October 27, 2019, in anticipation of the public safety power shutoffs initiated by the Investor-Owned Utilities due to the extreme fire and wind conditions. As a result, Department of Finance directed all departments to report costs associated with the two emergencies.
   1. This bill augments the following departments for costs incurred for the 2019 wildfires:
      1. Department of Transportation - $6.8 million for off-state highway system asset repair and traffic controls during the evacuations.
      2. Department of the California Highway Patrol - $1.286 million for traffic management overtime costs related to the wildfires.
      3. Department of Motor Vehicles - $19,000 for customer support to assist in replacement of important government records, claims for insurance, and other purposes related to losses suffered from the wildfires.
      4. Department of Parks and Recreation - $58,000 for the mobilization and deployment for fire response coordination and overtime costs for assistance with patrols for areas impacted by the fires.
      5. Emergency Medical Services Authority - $389,000 for the deployment of the California Medical Assistance Team (CalMAT) to provide care to patients and state personnel (e.g. firefighters) and overtime costs for staffing and logistical support.
      6. Department of Social Services - $83,000 for the State Emergency Food Reserve.
      7. Department of Corrections and Rehabilitation - $122,000 for wildfire suppression activities, including the use of CDCR state employee strike teams and equipment for both direct wildfire suppression and structure protection.
      8. Department of General Services - $6.457 million for overtime for emergency staff, laundry and shower units, sanitation rentals and transport, bio-cleaning for shelters, water and fuel infrastructure, comfort kits, unarmed security services, and other equipment and commodities.
      9. California Military Department - $2.979 million for the deployment of staff and resources to assist with evacuations, patrols, and providing/distributing life sustaining goods to populations affected/displaced by the fires.
   2. This bill augments the following department for the costs incurred for the 2019 public safety power shutoffs:
      1. Department of Social Services - $6 million for county Adult Protective Services social workers to conduct wellness checks of seniors during the public safety power shutoff and resources to reimburse and replenish the State Emergency Food Reserve, which provides shelf stable and ready to eat food for immediate use in response to emergencies.
   3. This bill augments the following department for the costs incurred for 2019 wildfires and public safety power shutoffs:
      1. Office of Emergency Services (Cal OES) - $24.717 million
         1. The PSPS-related costs were for the State Operations Center and regional response activity costs incurred by Cal OES for activations in response to the power shutoff events.
         2. Cal OES’ wildfire costs were made up of two components: (1) reimbursing local California fire companies for incident responses that were directed by Cal OES, but were outside of the mutual aid agreements; and (2) reimbursing the costs for out of state engines that provided mutual aid through the Emergency Management Assistance Compact (EMAC). Oregon, Washington, Montana, Utah, New Mexico, and Idaho each responded—sending a combined total of 150 engines to assist the state in suppressing the fires.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget and Fiscal Review Committee, this bill appropriates $115,419,000 General Fund to address shortfalls in the Budget Act of 2019. Balances of the appropriated funds as of June 30, 2020 as specified, would revert to the General Fund except as provided for the augmentation for CDFA.

SUPPORT: (Verified 6/11/20)

None received

OPPOSITION: (Verified 6/11/20)

None received

Prepared by: Hans Hemann / B. & F.R. / 916-651-4103

6/18/20 12:15:49

**** END ****

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 75 Hearing Date: June 12, 2020

Subject: Budget Act of 2019: Augmentation

Summary:

This bill makes a supplemental appropriation to the Budget Act of 2019.

Background: Specifically, this bill appropriates $115,419,000 General Fund to multiple state agencies for costs incurred during the 2019-2020 fiscal year.

Proposed Law:

1. Appropriates $4.8 million General Fund to augment the 2019 Budget Act for the California Department of Forestry and Fire Protection (CAL FIRE). The amount includes the cost of back pay of cash-in-lieu-of benefits pursuant to a settlement with Bargaining Unit 8. The Ninth Circuit Court of Appeals ruled that “cash-in-lieu of benefits” payouts should be included in the base salary amounts that are used to calculate employees’ overtime compensation. Accordingly, CAL FIRE and California Department of Human Resources (CalHR) reached a settlement with Bargaining Unit 8 to provide back pay to affected employees. The $4.8 million settlement agreement covers the calculated cost of planned and unplanned overtime hours for the period of November 2015 to June 2018. According to the Department of Finance, the overtime pay calculation has been corrected and CAL FIRE will absorb the additional incremental cost associated with this calculation change within its existing baseline overtime budget.
2. Appropriates $9.702 million General Fund to augment the 2019 Budget Act for the California Department of Corrections and Rehabilitation (CDCR) to conduct remediation work to control Legionella bacteria at the California Health Care Facility (CHCF) in Stockton. In April 2019, two inmates housed at CHCF tested positive for exposure to Legionella bacteria. One inmate passed away and a post-death analysis confirmed the presence of Legionella in the patient. CDCR consulted with the United State Centers for Disease Control, the California Department of Public Health and a contracted environmental consultant with water quality expertise. CDCR declared an emergency in accordance with Public Contract Code section 1102 and took action to control the Legionella bacteria at CHCF. The costs included $8.5 million for operating expenses and equipment including shower trailer rentals, in-line water filters, a water testing contract, chlorination equipment rental, bottled water and other miscellaneous supplies for water fixture flushing and other maintenance activities. An additional cost of $1.2 million was incurred for overtime for plant operations staff and custody staff.
3. Appropriates $11.7 million General Fund to augment the 2019 Budget Act for the Department of General Services (DGS) to conduct ongoing response and recovery operations related to the 2018 Camp Fire in Butte County. Most of department’s costs were reimbursed through Government Code section 8690.6, the Disaster Response-Emergency Operations Account (DREOA) and federal reimbursements from FEMA. However, due to the severity of the fire and the prolonged nature of the response and recovery efforts, DGS incurred additional costs that crossed fiscal years. The $11.7 million includes contract work for relief activities that continued into 2019 including janitorial services, security services, RVs, canopies and tents, water truck services, tank and grey water removal services, heating, propane tank and delivery services, and standby medical and airport services.
4. Appropriates $40.3 million General Fund to augment the 2019 Budget Act for the California Department of Food and Agriculture (CDFA) with an extended encumbrance to June 30, 2021. There are 77 fairs in California. Of those, 53 fairs are state-affiliated and have state civil servant employees. Due to the COVID-19 pandemic and the inability to conduct revenue-generating activities, many fairs, if not all, are facing significant financial difficulty. According to the Administration, to address the loss of revenue, all of the fairs are developing financial plans which may include laying off employees. The state expects the layoff process to begin in June 2020. The $40.3 million appropriated in this item is the estimated cost of employee compensation for the fairs that do not have sufficient funds or reserves to cover employee compensation costs during the layoff process. Under the projection, fair managers were expected to be laid off immediately. The remaining state civil servants are expected to go through the layoff process, incurring approximately 6 months of payroll expense. According to the Administration, fairs have lost approximately $98 million in revenue between March and June 2020. As a result, fairs are either using their reserves to pay their employees or are having to layoff staff or a combination of both. In the end, the state is financially responsible for the employee compensation of the state civil servants and the $40.3 million is the estimated cost of that obligation.
5. Appropriates $17,000 General Fund to augment the 2019 Budget Act to reimburse Mariposa County for the costs related to the homicide case of “People v. Cary Stayner.” This claim has been approved by the State Controller, pursuant to Chapter 3 (commencing with Section 15200) of Part 6 of Division 3 of Title of the Government Code, which allows qualified counties to seek state reimbursement for homicide trial costs.
6. Appropriates $48.9 million General Fund to augment the 2019 Budget Act for multiple departments that incurred costs associated with the 2019 wildfires and the public safety power shutoffs (PSPS). The Governor issued an emergency proclamation on October 25, 2019 for the counties of Sonoma and Los Angeles in response to the Kincade and Tick Fires, respectively. In addition, the Governor issued another emergency proclamation on October 27, 2019, in anticipation of the public safety power shutoffs initiated by the Investor-Owned Utilities due to the extreme fire and wind conditions. As a result, Department of Finance directed all departments to report costs associated with the two emergencies.
   1. This bill augments the following departments for costs incurred for the 2019 wildfires:
      1. Department of Transportation - $6.8 million for off-state highway system asset repair and traffic controls during the evacuations.
      2. Department of the California Highway Patrol - $1.286 million for traffic management overtime costs related to the wildfires.
      3. Department of Motor Vehicles - $19,000 for customer support to assist in replacement of important government records, claims for insurance, and other purposes related to losses suffered from the wildfires.
      4. Department of Parks and Recreation - $58,000 for the mobilization and deployment for fire response coordination and overtime costs for assistance with patrols for areas impacted by the fires.
      5. Emergency Medical Services Authority - $389,000 for the deployment of the California Medical Assistance Team (CalMAT) to provide care to patients and state personnel (e.g. firefighters) and overtime costs for staffing and logistical support.
      6. Department of Social Services - $83,000 for the State Emergency Food Reserve.
      7. Department of Corrections and Rehabilitation - $122,000 for wildfire suppression activities, including the use of CDCR state employee strike teams and equipment for both direct wildfire suppression and structure protection.
      8. Department of General Services - $6.457 million for overtime for emergency staff, laundry and shower units, sanitation rentals and transport, bio-cleaning for shelters, water and fuel infrastructure, comfort kits, unarmed security services, and other equipment and commodities.
      9. California Military Department - $2.979 million for the deployment of staff and resources to assist with evacuations, patrols, and providing/distributing life sustaining goods to populations affected/displaced by the fires.
   2. This bill augments the following department for the costs incurred for the 2019 public safety power shutoffs:
      1. Department of Social Services - $6 million for county Adult Protective Services social workers to conduct wellness checks of seniors during the public safety power shutoff and resources to reimburse and replenish the State Emergency Food Reserve, which provides shelf stable and ready to eat food for immediate use in response to emergencies.
   3. This bill augments the following department for the costs incurred for 2019 wildfires and public safety power shutoffs:
      1. Office of Emergency Services (Cal OES) - $24.717 million
         1. The PSPS-related costs were for the State Operations Center and regional response activity costs incurred by Cal OES for activations in response to the power shutoff events.
         2. Cal OES’ wildfire costs were made up of two components: (1) reimbursing local California fire companies for incident responses that were directed by Cal OES, but were outside of the mutual aid agreements; and (2) reimbursing the costs for out of state engines that provided mutual aid through the Emergency Management Assistance Compact (EMAC). Oregon, Washington, Montana, Utah, New Mexico, and Idaho each responded—sending a combined total of 150 engines to assist the state in suppressing the fires.

Fiscal Effect:

Appropriates $115,419,000 General Fund to address shortfalls in the Budget Act of 2019. Balances of the appropriated funds as of June 30, 2020 as specified, would revert to the General Fund except as provided for the augmentation for CDFA.

Support:

None on file.

Opposed:

None on file.

-- END --

 THIRD READING  

Bill No: AB 75

Author: Committee on Budget

Amended: 6/20/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 12-4, 6/19/19

AYES: Mitchell, Beall, Durazo, Hurtado, Leyva, McGuire, Monning, Pan, Roth, Skinner, Umberg, Wieckowski

NOES: Jones, Moorlach, Morrell, Stone

NO VOTE RECORDED: Nielsen, Stern

ASSEMBLY FLOOR: Not relevant

SUBJECT: Education finance: education omnibus budget trailer bill

SOURCE: Author

DIGEST:

This bill provides for statutory changes necessary to enact the K-12 statutory provisions of the Budget Act of 2019.

Senate Floor Amendments of 6/20/19 remove the requirement that a charter school must retain 50 percent of pre-emergency average daily attendance to access the hold-harmless funding, and make other technical, non-substantive changes.

ANALYSIS: This bill, as part of the 2019-20 budget package, makes statutory changes to implement the 2019-20 Budget Act. Specifically, this bill:

Early Education

1. Provides $300 million in one-time General Fund for the Full-Day Kindergarten Facilities Grant program. Makes changes to the existing program to 1) prioritize schools converting part-day to full-day kindergarten programs, 2) increase the state matching share from 50 percent to 75 percent, 3) allow for any remaining grant funding to be used for other one-time costs to implement the full-day kindergarten program and 4) specifies that participation in the Full-Day Kindergarten Facilities Grant program does not impact a district’s eligibility in the School Facility Program.
2. Changes the eligibility requirements for the state preschool program to provide priority access to full–day state preschool program slots to income eligible families with a need for full-day care (parents are working or in school), with remaining full-day slots available for other income eligible families. In addition, for programs operating in a school attendance area of a public school where at least 80 percent of enrolled pupils are eligible for free or reduced-price meals, after all eligible children are enrolled, the program may enroll four-year-old children who do not meet the eligibility requirements but who reside within the attendance boundary of the public school, commencing January 1, 2020.
3. Requires the Secretary of the Health and Human Services, in concurrence with the executive director of the State Board of Education (SBE) to contract for research to create a Master Plan to ensure comprehensive and affordable child care and universal preschool. Funding appropriated in the Budget Act for these purposes would be used for studies on the following: (a) a fiscal framework to expand early learning and care in the state; (b) early learning and care facility needs statewide; (c) needs for services by families eligible for subsidies; (d) a quality improvement plan to support all types of providers, and (e) steps necessary to provide universal pre-kindergarten for all three and four year old children. Studies shall be completed on a flow basis, but by October 1, 2020 at the latest.
4. Establishes the Early Learning and Care Infrastructure Grant Program to provide grants to child care and early education providers to build new facilities, or retrofit, renovate, or expand existing facilities. Competitive grants shall be available to providers to increase capacity or recover lost capacity as a result of a state or federal emergency through construction or renovation and modernization projects. The Superintendent of Public Instruction (SPI) shall determine the process for awarding and managing the grants and may set aside up to five percent to contract with organizations to provide technical assistance. Up to five percent shall be set aside each fiscal year for renovation, repair, modernization, or retrofitting existing early learning and care facilities to address health and safety or other licensure needs for low-income providers. Appropriates $142.7 million to be expended over five years in equal amounts per year (in addition to $102.3 million in federal funds appropriated through the budget act for this program). Requires annual reporting to the Governor and the relevant policy and fiscal committees of the Legislature on the expenditure of funds and relevant outcome data.

In addition, eliminates the Child Care Revolving Loan Program and retains the related fund through December 31, 2029 for the purpose of collecting deposits from outstanding loan and lease payments. Revenues from these purposes will be transferred to the Early Learning and Care Infrastructure Grant program. In addition, this section specifies that remaining non-Proposition 98 fund balance in the Child Care Revolving Loan Fund (CCRLF) is transferred to this grant program, and the remaining $10 million in non-Proposition 98 funds from the CCRLF are transferred to the Inclusive Early Education Expansion Program.

1. Establishes the Early Learning and Care Workforce Development Grant Program to expand the number of qualified early learning and care professionals and increase education credentials for existing professionals. The SPI shall award and administer grants, consistent with the Quality Rating and Improvement System local consortia, to local or regional quality improvement partnerships. Grants provided under this program may be used for costs associated with expenses related to education and professional development for all types of early learning and care professionals to increase educational attainment and/or development of competencies related to early childhood instruction and development. Appropriates $195 million for this program to be expended over five years in equal amounts per year. Up to one percent of funds may be set aside by the SPI for technical assistance to grantees and potential grantees. Requires annual reporting to the Governor and the relevant policy and fiscal committees of the Legislature on the expenditure of funds and relevant outcome data.
2. Provides $10 million in one-time General Fund for the Department of Education (CDE), Department of Social Services, Department of Human Resources and the Public Employment Relations Board for costs associated with implementing child care organizing. Requires each department to submit expenditure plans and allocates the funds contingent on Department of Finance (DOF) approval and notification of the Joint Legislative Budget Committee. Requires the CDE and the Department of Social Services to collect contact information for child care providers to make available to provider organizations for organizing purposes.
3. Applies the reimbursement rate adjustment factor for children with exceptional needs to part-day state preschool programs. Rate adjustment factors are intended to account for the higher costs of serving children in specific categories. This specific rate adjustment factor previously applied only to full day state preschool programs.
4. Establishes the Early Childhood Policy Council to advise the Governor, the Legislature, and the SPI on statewide early learning and care policy, building on the work of the state’s Master Plan for Early Learning and Care and the 2019 California Blue Ribbon Commission on Early Childhood Education Final Report. The Council shall consult with a parent advisory committee and a workforce advisory committee. The CDE shall provide staffing to the Council and up to $300,000 of funds provided for the Council may be used for this purpose.
5. Delays the implementation of the requirement to provide 14-days notice to Alternative Payment child care providers before a family can receive a subsidy for a different provider until July 1, 2020.

K-12 Education

1. Creates the Special Education Early Intervention Preschool grant, provided to LEAs based on the number of three and four year olds with exceptional needs, specifically students with Individualized Education Plans (IEPs). Requires ongoing funding to be contingent upon the passage of legislation in the 2020-21 budget to reform the special education system to improve outcomes for students.
2. Brings all local educational agencies (LEAs) to the statewide base rate for special education funding.
3. Provides $368.4 million in one-time Proposition 98 “settle-up” funding in 2019-20 to allocate to school districts and community colleges for the purposes of reducing the outstanding Proposition 98 funding owed to schools for the 2009-10 fiscal year. Funding is provided for 2018-19 LCFF expenditures for school districts and charter schools and for other community college programs in the 2019-20 fiscal year.
4. Dedicates $89.8 million in one-time General Fund for the Golden State Teacher Grant program. The Student Aid Commission is charged with providing one-time grants of $20,000 to each student enrolled in a professional preparation program leading to a preliminary teaching credential, if the student commits to working in a high-need field at a priority school for four years after the student receives a teaching credential.
5. Establishes the Mental Health Student Services Act to create a competitive grant program to fund partnerships between county mental health or behavioral health departments and K-12 school districts, charter schools, and the county office of education within a county. The grant program is managed by the Mental Health Services Oversight and Accountability Commission. Funds would be available for expenditure across a five-year period. Grant funds shall be used for services provided on K-12 campuses, suicide prevention services, dropout prevention services, outreach to at-risk youth, placement assistance for ongoing services, and other services to respond to the mental health needs of students and youth.
6. Provides $38.1 million in one-time non-Proposition 98 funding for the Educator Workforce Investment Grant to provide competitive grants for professional learning opportunities for teachers and paraprofessionals. The CDE is charged with administering grants to one or more institutions of higher education or nonprofit organizations with expertise in developing and providing professional learning to teachers and paraprofessionals. Of this funding, $10 million is for professional development for the English Learner Roadmap adopted by the SBE, $5 million is for special education related professional development and $22.1 million for professional development in other areas. These other areas include social-emotional learning, positive school climate, (including restorative justice), the computer science content standards and the ethnic studies model curriculum. Provides the CDE $250,000 each year for four years to implement the Educator Workforce Investment Grant program.
7. Appropriates $36 million in one-time Proposition 98 funding for the Classified School Employees Summer Assistance Program, created in the 2018-19 budget. Makes changes to the program to allow the funds to be available over three years, to increase the minimum salary requirements and to make other minor and technical changes.
8. Appropriates $10 million in one-time General Fund for the development of the California Cradle to Career Data System. Funding shall be provided the Governor’s Office of Planning and Research to contract with planning facilitators to lead a workgroup comprised of representatives from education, workforce, health, and other relevant agencies. By July 1, 2020, the workgroup shall report to the DOF and the Legislature on the proposed structure of the data system, including governance, architecture and functionality of the system. By January 1, 2021, the workgroup shall report to the DOF and the Legislature on additional details regarding the data system. Of the total funding, $2 million is available for the administrative costs of the workgroup process, $300,000 is available for the California Community Colleges, California State University, and University of California to integrate the use of Statewide Student Identifiers into their systems, and the remailing funds are available for initial implementation activities upon approval of an expenditure by the DOF and notification to the Joint Legislative Budget Committee.
9. Establishes the 21st Century California School Leadership Academy, administered by the CDE and the California Collaborative for Educational Excellence (CCEE) to provide professional learning opportunities for school administrators and other school leaders, aligned with the statewide system of support. Eligible grantees include LEAs, institutions of higher education and nonprofit educational service providers.
10. Provides $7.5 million in one-time non-Proposition 98 funding for the Broadband Infrastructure Grant Program to improve broadband infrastructure in schools. Requires the CDE to contract with the Corporation for Education Network Initiatives in California (CENIC) to administer the program and identify broadband connectivity solutions to the most poorly connected school sites.
11. Prohibits charter schools from discouraging students from enrolling in a charter school or encouraging students to disenroll from a charter school on the basis of academic performance or student characteristic, or from obtaining specified student information prior to enrollment. Allows a charter school that exists as of July 1, 2019 that operates in partnership with the California National Guard to dismiss a pupil from the charter school for failing to maintain the minimum standards of conduct required by the California Military Department.
12. Requires CDE to conduct a study on the feasibility of using student enrollment data from the California Longitudinal Pupil Assessment Data System to identify potential instances of practices that discourage students from enrolling in charter schools.
13. Includes $3 million in one-time Proposition 98 funding for CDE to allocate to the Kern County Superintendent of Schools for the Fiscal Crisis and Management Assistance Team for the Standardized Account Code Structure system replacement project.
14. Provides $2 million in one-time Proposition 98 funding for the Southern California Regional Occupational Center (SoCal ROC) for instructional and operational costs in the 2019-20 fiscal year. Requires SoCal ROC to provide an updated operational plan to the DOF and the Legislative Analyst’s Office on or before September 1, 2019.
15. Provides an exemption for a school district with average daily attendance of more than 400,000 from administrator to teacher ratio penalties (calculated pursuant to Education Code Section 41404) for the 2019-20 through 2021-22 fiscal years. Requires annual reporting on the administrator to teacher ratio calculation for each year a school district receives a waiver under this provision, including historical information for past years and the school district's plan to meet the ratio requirements over time.
16. Extends the hold-harmless funding provisions to school districts and charter schools that experienced attendance losses as a result of the 2018 wildfires through 2020-21. Applies the hold harmless to eligible charter schools regardless of average daily attendance changes. Allows for the Paradise Unified School District to request the Fiscal Crisis Management Assistance Team to conduct an evaluation of the need for additional funding and statutory changes for the 2021-22 fiscal year.
17. Provides a backfill for wildfire affected basic aid school districts for property tax losses in 2018-19 and 2019-20.
18. Provides a backfill for special education programs for 2018-19 and 2019-20 to the extent that property tax revenues from Redevelopment Agency dissolution are not sufficient to cover the appropriation in the 2018 and 2019 Budget Acts for Special Education.
19. Creates the Breakfast After the Bell grant program. The CDE is charged with administering grants to LEAs to start-up or expand school breakfast programs that offer breakfast to students after the start of the school day.
20. Allocates $500,000 in one-time non-Proposition 98 funding to create a workgroup to increase the ability of schools to draw down federal funds for medically related services for students and improve the transition of thee-year olds with disabilities from regional centers to schools.
21. Provides $178,000 in 2019-20 and $154,000 ongoing for the SBE to enter into a contract with the San Joaquin County Office of Education to support maintenance of the California School Dashboard and the School Accountability Report Card.
22. Expands the Uniform Complaint Procedures to include complaints of non-compliance with required minimum instructional minutes for physical education for grades 9 to 12. This change conforms to the existing process for grades 1 to 8.
23. Requires local indicators used by LEAs for the Local Control Accountability Plan (LCAP) process to reflect school site-level data, if it is currently collected statewide by CDE, by January 31, 2020.
24. Extends the deadline for the CDE to develop the Special Education Local Plan Area (SELPA) assurances support template from March 31, 2019 to July 1, 2020. Additionally, extends the deadline for SELPAs to submit the assurances support plan from July 1, 2020 to July 1, 2021, to align with the development of the template.
25. Includes the Cal Grant: Opt-Out Notice and Grade Point Average Submission mandated program in the K-12 mandate block grant.
26. Provides $350,000 one-time Proposition 98 funding for the SBE to contract with the San Joaquin County Office of Education to merge the Dashboard, LCAP electronic template, and other local school site and school district reports into a single web-based application.
27. Specifies the state priorities that charter schools need to address in their Local Control and Accountability Plans (LCAPs), and clarifies that charter LCAPs need to be adopted at a public hearing and prominently posted online, and that charter schools are required to translate reports and notices if 15 percent or more of their enrolled students speak a primary language other than English. 
28. Aligns the treatment of in-lieu of property tax transfers for charter schools authorized on appeal by the SBE with the treatment of countywide benefit charter schools that serve students from a basic aid school district of residence.
29. Expands the list of non-waivable sections of law to include all Education Code sections that pertain to the LCFF apportionment calculations. Apportionment statutes are not subject to waiver by the SBE.
30. Extends through the 2019-20 fiscal year the existing funding allocation method for the Out-of-Home Care program for foster students with exceptional needs.
31. Makes technical and clarifying changes to the school site council requirements for schools and LEAs.
32. Specifies which appropriations are transferred through the K-12 portion of the State School Fund in order to streamline the apportionment accounting process for the CDE and the State Controller’s Office while still meeting statutory apportionment deadlines and satisfying the constitutional requirements of the pass-through fund.
33. Shifts Proposition 98 funding for part-day State Preschool at non-LEAs to the non-Proposition 98 General Fund and rebenches the Proposition 98 guarantee.
34. Extends the suspension of the Proposition 98 statutory split for K-12 education and community colleges for the 2019-20 fiscal year.
35. Allows for the Commission on Teacher Credentialing to receive donations, bequests, grants and philanthropic funding, subject to approval by the Director of Finance.
36. Specifies that specified one-time funding provided in the 2018-19 budget counts toward the Proposition 98 guarantee, including $4 million for the San Francisco Unified School District, $2 million for the Sweetwater Unified School District and $1.7 million for CDE for a suicide prevention program.
37. Provides $4 million one-time General Fund for the Special Olympics of Northern and Southern California.
38. Provides an exemption for Leggett Valley Unified School District and Big Sur Unified School District to operate on a four-day school week without penalties pursuant to meeting instructional minute requirements each year. In addition, the school districts are required to provide a plan to the CDE on meeting the instructional minute requirement in the following year. Amends statute to clarify that these school districts retain funding under the Local Control Funding Formula.
39. Makes technical and clarifying changes to the Career Technical Education Incentive Grant program and the K-12 Strong Workforce program, including updating the name of the related federal grant program and clarifying that a regional occupational center or program (ROCP) operated by a county office of education is also eligible to receive grant funding.
40. Clarifies the roles and responsibilities of the Agricultural Career Technical Education Unit within the CDE.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes

According to the Senate Budget and Fiscal Review Committee, the funding related to the changes in this bill is contained in the 2019-20 Budget Act. In addition, this bill appropriates funding for K-14 education programs, totaling approximately $1.2 billion.

SUPPORT: (Verified 6/13/19)

None received

OPPOSITION: (Verified 6/13/19)

None received

Prepared by: Elisa Wynne / B. & F.R. / 916-651-4103

6/24/19 13:54:29

**** END ****

(Without Reference to File)

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 75

Author:(Committee on Budget)

As Amended Ver:June 13, 2019

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This is the K-12 and Early Education Omnibus trailer bill for the 2019-20 budget. It contains various statutory changes necessary to implement the Budget Act of 2019. Specifically, this bill:

Early Education

1. Provides $300 million in one-time General Fund for the Full-Day Kindergarten Facilities Grant program. Makes changes to the existing program to 1) prioritize schools converting part-day to full-day kindergarten programs, 2) increase the state matching share from 50% to 75%, 3) allow for any remaining grant funding to be used for other one-time costs to implement the full-day kindergarten program and 4) specifies that participation in the Full-Day Kindergarten Facilities Grant program does not impact a district's eligibility in the School Facility Program.
2. Expands eligibility for the California State Preschool program to include all three and four year olds in a school attendance area of a public school where at least 80% of enrolled pupils are eligible for free or reduced process meals, beginning January 1, 2020. Includes existing priority for lowest income, neglected and abused and four year-old children first. Changes the eligibility requirements for the State Preschool program to provide priority access to full-day state preschool program slots to income eligible families with a need for full-day care (parents are working or in school), with remaining full-day slots available for other income eligible families.
3. Requires the Secretary of the Health and Human Services, in concurrence with the executive director of the State Board of Education to contract for research to create a Master Plan to ensure comprehensive and affordable child care and universal preschool. Funding appropriated in the Budget Act for these purposes would be used for studies on the following: 1) a fiscal framework to expand early learning and care in the state; 2) early learning and care facility needs statewide; 3) needs for services by families eligible for subsidies; 4) a quality improvement plan to support all types of providers, and 5) steps necessary to provide universal pre-kindergarten for all three and four year old children. Studies shall be completed on a flow basis, but by October 1, 2020 at the latest.
4. Establishes the Early Learning and Care Infrastructure Grant Program to provide grants to child care and early education providers to build new facilities, or retrofit, renovate, or expand existing facilities. Competitive grants shall be available to providers to increase capacity or recover lost capacity as a result of a state or federal emergency through construction or renovation and modernization projects. The Superintendent of Public Instruction shall determine the process for awarding and managing the grants and may set aside up to 5% to contract with organizations to provide technical assistance. Up to 5% shall be set aside each fiscal year for renovation, repair modernization, or retrofitting existing early learning and care facilities to address health and safety or other licensure needs for low-income providers. Appropriates $142.7 million to be expended over five years in equal amounts per year (in addition to $102.3 in federal funds appropriated through the budget act for this program). Requires annual reporting to the Governor and the relevant policy and fiscal committees of the Legislature on the expenditure of funds and relevant outcome data.

In addition, eliminates the Child Care Revolving Loan Program, retains the related fund through December 31, 2029 for the purpose of collecting deposits from outstanding loan and lease payments. Revenues from these purposes will be transferred to the Early Learning and Care Infrastructure Grant program. In addition, this section specifies that remaining non-Proposition 98 fund balance in the Child Care Revolving Loan Fund (CCRLF) is transferred to this grant program, and the remaining $10 million in non-Proposition 98 funds from the CCRLF are transferred to the Inclusive Early Education Expansion Program.

1. Establishes the Early Learning and Care Workforce Development Grant Program to expand the number of qualified early learning and care professionals and increase education credentials for existing professionals. The Superintendent of Public Instruction shall award and administer grants, consistent with the Quality Rating and Improvement System local consortia, to local or regional quality improvement partnerships. Grants provided under this program may be used for costs associated with expenses related to education and professional development for all types of early learning and care professionals to increase educational attainment and/or development of competencies related to early childhood instruction and development. Appropriates $195 million for this program to be expended over five years in equal amounts per year. Up to 1% of funds may be set aside by the Superintendent for technical assistance to grantees and potential grantees. Requires annual reporting to the Governor and the relevant policy and fiscal committees of the Legislature on the expenditure of funds and relevant outcome data.
2. Provides $10 million in one-time General Fund for the Department of Education, Department of Social Services, Department of Human Resources and the Public Employment Relations Board for costs associated with implementing child care organizing. Requires each department to submit expenditure plans and allocates the funds contingent on Department of Finance approval and notification of the Joint Legislative Budget Committee. Requires the Department of Education and the Department of Social Services to collect contact information on child care providers to make available to provider organizations for organizing purposes.
3. Applies the reimbursement rate adjustment factor for children with exceptional needs to part–day state preschool programs. Rate adjustment factors are intended to account for the higher costs of serving children in specific categories. This specific rate adjustment factor previously applied only to full day state preschool programs.
4. Establishes the Early Childhood Policy Council to advise the Governor, the Legislature, and the Superintendent on statewide early learning and care policy, building on the work of the state's Master Plan for Early Learning and Care and the 2019 California Blue Ribbon Commission on Early Childhood Education Final Report. The Council shall consult with a parent advisory committee and a workforce advisory committee. The Department of Education shall provide staffing to the Council and up to $300,000 of funds provided for the Council may be used for this purpose.
5. Delays the implementation of the requirement to provide 14 day notice to an Alternative Payment child care providers before a family can receive a subsidy for a different provider until July 1, 2020.

K-12 Education

1. Establishes the Special Education Early Intervention Preschool grant, provided to LEAs based on the number of three and four year olds with exceptional needs, specifically students with Individualized Education Plans (IEPs). Requires ongoing funding to be contingent upon the passage of legislation in the 2020-21 budget to reform the special education system to improve outcomes for students.
2. Provides the allocation methodology to bring all local educational agencies (LEAs) to the statewide base rate for special education funding.
3. Provides $368.4 million in one-time Proposition 98 "settle-up" funding in 2019-20 to allocate to school districts and community colleges for the purposes of reducing the outstanding Proposition 98 funding owed to schools for the 2009-10 fiscal year. Funding is provided for 2018-19 LCFF expenditures for school districts and charter schools and for other community college programs in the 2019-20 fiscal year.
4. Dedicates $89.8 million in one-time General Fund for the Golden State Teacher Grant program. The Student Aid Commission is charged with providing one-time grants of $20,000 to each student enrolled in a professional preparation program leading to a preliminary teaching credential, if the student commits to working in a high-need field at a priority school for four years after the student receives a teaching credential.
5. Establishes the Mental Health Student Services Act to create a competitive grant program to fund partnerships between county mental health or behavioral health departments and K-12 school districts, charter schools, and the county office of education within a county. The grant program is managed by the Mental Health Services Oversight and Accountability Commission Funds would be available for expenditure across a five year period. Grant funds shall be used for services provided on K-12 campuses, suicide prevention services, drop-out prevention services, outreach to at-risk youth, placement assistance for ongoing services, and other services to respond to the mental health needs of students and youth.
6. Provides $38.1 million in one-time non-Proposition 98 funding for the Educator Workforce Investment Grant to provide competitive grants for professional learning opportunities for teachers and paraprofessionals. The Department of Education is charged with administering grants to one or more institutions of higher education or nonprofit organizations with expertise in developing and providing professional learning to teachers and paraprofessionals. Of this funding, $10 million is for professional development for the English Learner Roadmap adopted by the State Board of Education, $5 million is for special education related professional development and $22.1 million for professional development in other areas, including social-emotional learning, positive school climate, including restorative justice, the computer science content standards and the ethnic studies model curriculum. Provides the Department of Education $250,000 each year for four years to implement the Educator Workforce Investment Grant program.
7. Dedicates $36 million in one-time Proposition 98 funding for the Classified School Employees Summer Assistance Program, created in the 2018-19 budget. Makes changes to the program to allow the funds to be available over three years, increase the minimum salary requirements and make other minor and technical changes.
8. Appropriates $10 million in one-time General Fund for the development of the California Cradle to Career Data System. Funding shall be provided to the Governor's Office of Planning and Research to contract with planning facilitators to lead a workgroup comprised of representatives from education, workforce, health, and other relevant agencies. By July 1, 2020, the workgroup shall report to the Department of Finance and the Legislature on the proposed structure of the data system, including, governance, architecture and functionality of the system. By January 1, 2021, the workgroup shall report to the Department of Finance and the Legislature on additional details regarding the data system. Of the total funding, $2 million is available for the administrative costs of the workgroup process, $300,000 is available for the California Community Colleges, California State University, and University of California to integrate the use of Statewide Student Identifiers into their systems, and the remaining funds are available for initial implementation activities upon approval of an expenditure by the Department of Finance and notification to the Joint Legislative Budget Committee.
9. Creates the 21st Century California School Leadership Academy, administered by the Department of Education and the California Collaborative for Educational Excellence (CCEE) to provide professional learning opportunities for school administrators and other school leaders, aligned with the statewide system of support. Eligible grantees include LEAs, institutions of higher education and nonprofit educational service providers.
10. Provides $7.5 million in one-time non-Proposition 98 funding for the Broadband Infrastructure Grant Program to improve broadband infrastructure in schools. Requires the Department of Education to contract with the Corporation for Education Network Initiatives in California (CENIC) to administer the program and identify broadband connectivity solutions to the most poorly connected school sites.
11. Prohibits charter schools from discouraging students from enrolling in a charter school or encouraging students to disenroll from a charter school on the basis of academic performance or student characteristic, or from obtaining specified student information prior to enrollment. Allows a charter school that exists as of as of July 1, 2019 that operates in partnership with the California National Guard may dismiss a pupil from the charter school for failing to maintain the minimum standards of conduct required by the California Military Department.
12. Requires California Department of Education (CDE) to conduct a study on the feasibility of using student enrollment data from the California Longitudinal Pupil Assessment Data System to identify potential instances of practices that discourage students from enrolling in charter schools.
13. Includes $3 million in one-time Proposition 98 funding for CDE to allocate to the Kern County Superintendent of Schools for the Fiscal Crisis and Management Assistance Team for the Standardized Account Code Structure system replacement project.
14. Provides $2 million in one-time Proposition 98 funding for the Southern California Regional Occupational Center (SoCal ROC) for instructional and operational costs in the 2019-20 fiscal year. Requires SoCal ROC to provide an updated operational plan to the Department of Finance and the Legislative Analyst's Office on or before September 1, 2019.
15. Provides an exemption for a school district with average daily attendance of more than 400,000 from administrator to teacher ratio penalties (calculated pursuant to Education Code Section 41404) for the 2019-20 through 2021-22 fiscal years. Requires annual reporting on the administrator to teacher ratio calculation for each year a school district receives a waiver under this provision, including historical information for past years and the school district's plan to meet the ratio requirements over time.
16. Extends the hold-harmless funding provisions to school districts and charter schools that experienced attendance losses as a result of the 2018 wildfires through 2020-21. Allows for the Paradise Unified School District to request the Fiscal Crisis Management Assistance Team to conduct an evaluation of the need for additional funding and statutory changes for the 2021-22 fiscal year.
17. Provides a backfill for wildfire affected basic aid school districts for property tax losses in 2018-19 and 2019-20.
18. Provides a backfill for special education programs for 2018-19 and 2019-20 to the extent that property tax revenues from Redevelopment Agency dissolution is not sufficient to cover the appropriation in the 2018 and 2019 Budget Acts for Special Education.
19. Creates the Breakfast After the Bell grant program. The CDE is charged with administering grants to LEAs to start-up or expand school breakfast programs that offer breakfast to students after the start of the school day.
20. Allocates $500,000 in one-time non-Proposition 98 funding to create a workgroup to increase the ability of schools to draw down federal funds for medically related services for students and improve the transition of thee-year olds with disabilities from regional centers to schools.
21. Provides $178,000 in 2019-20 and $154,000 ongoing for the State Board of Education to enter into a contract with the San Joaquin County Office of Education to support maintenance of the California School Dashboard and the School Accountability Report Card.
22. Expands the Uniform Complaint Procedures to include complaints of non-compliance with required minimum instructional minutes for physical education for grades 9 to 12. This change conforms to the existing process for grades 1 to 8.
23. Requires local indicators used by LEAs for the Local Control Accountability Plan (LCAP) process to reflect school site-level data, if it is currently collected statewide by CDE, by January 31, 2020.
24. Extends the deadline for the CDE to develop the Special Education Local Plan Area (SELPA) assurances support template from March 31, 2019 to July 1, 2020. Additionally, extends the deadline for SELPAs to submit the assurances support plan from July 1, 2020 to July 1, 2021, to align with the development of the template.
25. Includes the Cal Grant: Opt-Out Notice and Grade Point Average Submission mandated program to the K-12 mandate block grant.
26. Provides $350,000 one-time Proposition 98 funding for the State Board of Education to contract with the San Joaquin County Office of Education to merge the Dashboard, LCAP electronic template, and other local school site and school district reports into a single web-based application.
27. Specifies the state priorities that charter schools need to address in their Local Control and Accountability Plans (LCAPs), and clarifies that charter LCAPs need to be adopted at a public hearing and prominently posted online, and that charter schools are required to translate reports and notices if 15 percent or more of their students enrolled speak a primary language other than English. 
28. Aligns the treatment of in-lieu of property tax transfers for charter schools authorized on appeal by the State Board of Education with the treatment of countywide benefit charter schools that serve students from a basic aid school district of residence.
29. Expands the list of non-waivable sections of law to include all Education Code sections that pertain to the LCFF apportionment calculations. Apportionment statutes are not subject to waiver by the State Board of Education.
30. Extends through the 2019-20 fiscal year the existing funding allocation method for the Out-of-Home Care program for foster students with exceptional needs.
31. Makes technical and clarifying changes to the schoolsite council requirements for schools and local educational agencies.
32. Specifies which appropriations are transferred through the K-12 portion of the State School Fund in order to streamline the apportionment accounting process for the Department of Education and the State Controller's Office while still meeting statutory apportionment deadlines and satisfying the constitutional requirements of the pass-through fund.
33. Shifts Proposition 98 funding for part-day State Preschool at non-local educational agencies to the non-Proposition 98 General Fund and rebenches the Proposition 98 guarantee.
34. Extends the suspension of the Proposition 98 statutory split for K-12 education and community colleges for the 2019-20 fiscal year.
35. Allows for the Commission on Teacher Credentialing to receive donations, bequests, grants and philanthropic funding, subject to the Director of Finance.
36. Specifies that specified one-time funding provided in the 2018-19 budget counts toward the Proposition 98 guarantee, including $4 million for San Francisco Unified School District, $2 million for Sweetwater Unified School District and $1.7 million for CDE for a suicide prevention program.
37. Provides $4 million one-time General Fund for the Special Olympics of Northern and Southern California.
38. Provides an exemption for Leggett Valley Unified School District and Big Sur Unified School District to operate on a four-day school week without penalties pursuant to meeting instructional minute requirements each year and providing a plan to the Department of Education on meeting the instructional minute requirement in the following year. Amends statute to clarify that these school districts retain funding under the Local Control Funding Formula.
39. Makes technical and clarifying changes to the Career Technical Education Incentive Grant program and the K-12 Strong Workforce program, including updating the name of the related federal grant program and clarifying that a regional occupational center or program (ROCP) operated by a county office of education is also eligible to receive grant funding.
40. Clarifies the roles and responsivities of the Agricultural Career Technical Education Unit within the Department of Education.

The Senate Amendments:

COMMENTS:

This bill makes various changes to implement budget actions related to K-12 and early education, adopted as part of the 2019-20 Budget package.

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 13, 2019

CONSULTANT: Katie Hardeman / BUDGET / (916) 319-2099 FN: 0001124

 THIRD READING  

Bill No: AB 75

Author: Committee on Budget

Amended: 6/13/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 12-4, 6/19/19

AYES: Mitchell, Beall, Durazo, Hurtado, Leyva, McGuire, Monning, Pan, Roth, Skinner, Umberg, Wieckowski

NOES: Jones, Moorlach, Morrell, Stone

NO VOTE RECORDED: Nielsen, Stern

ASSEMBLY FLOOR: Not relevant

SUBJECT: Education finance: education omnibus budget trailer bill

SOURCE: Author

DIGEST:

This bill provides for statutory changes necessary to enact the K-12 statutory provisions of the Budget Act of 2019.

ANALYSIS: This bill, as part of the 2019-20 budget package, makes statutory changes to implement the 2019-20 Budget Act. Specifically, this bill:

Early Education

1. Provides $300 million in one-time General Fund for the Full-Day Kindergarten Facilities Grant program. Makes changes to the existing program to 1) prioritize schools converting part-day to full-day kindergarten programs, 2) increase the state matching share from 50 percent to 75 percent, 3) allow for any remaining grant funding to be used for other one-time costs to implement the full-day kindergarten program and 4) specifies that participation in the Full-Day Kindergarten Facilities Grant program does not impact a district’s eligibility in the School Facility Program.
2. Changes the eligibility requirements for the state preschool program to provide priority access to full–day state preschool program slots to income eligible families with a need for full-day care (parents are working or in school), with remaining full-day slots available for other income eligible families. In addition, for programs operating in a school attendance area of a public school where at least 80 percent of enrolled pupils are eligible for free or reduced-price meals, after all eligible children are enrolled, the program may enroll four-year-old children who do not meet the eligibility requirements but who reside within the attendance boundary of the public school, commencing January 1, 2020.
3. Requires the Secretary of the Health and Human Services, in concurrence with the executive director of the State Board of Education (SBE) to contract for research to create a Master Plan to ensure comprehensive and affordable child care and universal preschool. Funding appropriated in the Budget Act for these purposes would be used for studies on the following: (a) a fiscal framework to expand early learning and care in the state; (b) early learning and care facility needs statewide; (c) needs for services by families eligible for subsidies; (d) a quality improvement plan to support all types of providers, and (e) steps necessary to provide universal pre-kindergarten for all three and four year old children. Studies shall be completed on a flow basis, but by October 1, 2020 at the latest.
4. Establishes the Early Learning and Care Infrastructure Grant Program to provide grants to child care and early education providers to build new facilities, or retrofit, renovate, or expand existing facilities. Competitive grants shall be available to providers to increase capacity or recover lost capacity as a result of a state or federal emergency through construction or renovation and modernization projects. The Superintendent of Public Instruction (SPI) shall determine the process for awarding and managing the grants and may set aside up to five percent to contract with organizations to provide technical assistance. Up to five percent shall be set aside each fiscal year for renovation, repair, modernization, or retrofitting existing early learning and care facilities to address health and safety or other licensure needs for low-income providers. Appropriates $142.7 million to be expended over five years in equal amounts per year (in addition to $102.3 million in federal funds appropriated through the budget act for this program). Requires annual reporting to the Governor and the relevant policy and fiscal committees of the Legislature on the expenditure of funds and relevant outcome data.

In addition, eliminates the Child Care Revolving Loan Program and retains the related fund through December 31, 2029 for the purpose of collecting deposits from outstanding loan and lease payments. Revenues from these purposes will be transferred to the Early Learning and Care Infrastructure Grant program. In addition, this section specifies that remaining non-Proposition 98 fund balance in the Child Care Revolving Loan Fund (CCRLF) is transferred to this grant program, and the remaining $10 million in non-Proposition 98 funds from the CCRLF are transferred to the Inclusive Early Education Expansion Program.

1. Establishes the Early Learning and Care Workforce Development Grant Program to expand the number of qualified early learning and care professionals and increase education credentials for existing professionals. The SPI shall award and administer grants, consistent with the Quality Rating and Improvement System local consortia, to local or regional quality improvement partnerships. Grants provided under this program may be used for costs associated with expenses related to education and professional development for all types of early learning and care professionals to increase educational attainment and/or development of competencies related to early childhood instruction and development. Appropriates $195 million for this program to be expended over five years in equal amounts per year. Up to one percent of funds may be set aside by the SPI for technical assistance to grantees and potential grantees. Requires annual reporting to the Governor and the relevant policy and fiscal committees of the Legislature on the expenditure of funds and relevant outcome data.
2. Provides $10 million in one-time General Fund for the Department of Education (CDE), Department of Social Services, Department of Human Resources and the Public Employment Relations Board for costs associated with implementing child care organizing. Requires each department to submit expenditure plans and allocates the funds contingent on Department of Finance (DOF) approval and notification of the Joint Legislative Budget Committee. Requires the CDE and the Department of Social Services to collect contact information for child care providers to make available to provider organizations for organizing purposes.
3. Applies the reimbursement rate adjustment factor for children with exceptional needs to part-day state preschool programs. Rate adjustment factors are intended to account for the higher costs of serving children in specific categories. This specific rate adjustment factor previously applied only to full day state preschool programs.
4. Establishes the Early Childhood Policy Council to advise the Governor, the Legislature, and the SPI on statewide early learning and care policy, building on the work of the state’s Master Plan for Early Learning and Care and the 2019 California Blue Ribbon Commission on Early Childhood Education Final Report. The Council shall consult with a parent advisory committee and a workforce advisory committee. The CDE shall provide staffing to the Council and up to $300,000 of funds provided for the Council may be used for this purpose.
5. Delays the implementation of the requirement to provide 14-days notice to Alternative Payment child care providers before a family can receive a subsidy for a different provider until July 1, 2020.

K-12 Education

1. Creates the Special Education Early Intervention Preschool grant, provided to LEAs based on the number of three and four year olds with exceptional needs, specifically students with Individualized Education Plans (IEPs). Requires ongoing funding to be contingent upon the passage of legislation in the 2020-21 budget to reform the special education system to improve outcomes for students.
2. Brings all local educational agencies (LEAs) to the statewide base rate for special education funding.
3. Provides $368.4 million in one-time Proposition 98 “settle-up” funding in 2019-20 to allocate to school districts and community colleges for the purposes of reducing the outstanding Proposition 98 funding owed to schools for the 2009-10 fiscal year. Funding is provided for 2018-19 LCFF expenditures for school districts and charter schools and for other community college programs in the 2019-20 fiscal year.
4. Dedicates $89.8 million in one-time General Fund for the Golden State Teacher Grant program. The Student Aid Commission is charged with providing one-time grants of $20,000 to each student enrolled in a professional preparation program leading to a preliminary teaching credential, if the student commits to working in a high-need field at a priority school for four years after the student receives a teaching credential.
5. Establishes the Mental Health Student Services Act to create a competitive grant program to fund partnerships between county mental health or behavioral health departments and K-12 school districts, charter schools, and the county office of education within a county. The grant program is managed by the Mental Health Services Oversight and Accountability Commission. Funds would be available for expenditure across a five-year period. Grant funds shall be used for services provided on K-12 campuses, suicide prevention services, dropout prevention services, outreach to at-risk youth, placement assistance for ongoing services, and other services to respond to the mental health needs of students and youth.
6. Provides $38.1 million in one-time non-Proposition 98 funding for the Educator Workforce Investment Grant to provide competitive grants for professional learning opportunities for teachers and paraprofessionals. The CDE is charged with administering grants to one or more institutions of higher education or nonprofit organizations with expertise in developing and providing professional learning to teachers and paraprofessionals. Of this funding, $10 million is for professional development for the English Learner Roadmap adopted by the SBE, $5 million is for special education related professional development and $22.1 million for professional development in other areas. These other areas include social-emotional learning, positive school climate, (including restorative justice), the computer science content standards and the ethnic studies model curriculum. Provides the CDE $250,000 each year for four years to implement the Educator Workforce Investment Grant program.
7. Appropriates $36 million in one-time Proposition 98 funding for the Classified School Employees Summer Assistance Program, created in the 2018-19 budget. Makes changes to the program to allow the funds to be available over three years, to increase the minimum salary requirements and to make other minor and technical changes.
8. Appropriates $10 million in one-time General Fund for the development of the California Cradle to Career Data System. Funding shall be provided the Governor’s Office of Planning and Research to contract with planning facilitators to lead a workgroup comprised of representatives from education, workforce, health, and other relevant agencies. By July 1, 2020, the workgroup shall report to the DOF and the Legislature on the proposed structure of the data system, including governance, architecture and functionality of the system. By January 1, 2021, the workgroup shall report to the DOF and the Legislature on additional details regarding the data system. Of the total funding, $2 million is available for the administrative costs of the workgroup process, $300,000 is available for the California Community Colleges, California State University, and University of California to integrate the use of Statewide Student Identifiers into their systems, and the remailing funds are available for initial implementation activities upon approval of an expenditure by the DOF and notification to the Joint Legislative Budget Committee.
9. Establishes the 21st Century California School Leadership Academy, administered by the CDE and the California Collaborative for Educational Excellence (CCEE) to provide professional learning opportunities for school administrators and other school leaders, aligned with the statewide system of support. Eligible grantees include LEAs, institutions of higher education and nonprofit educational service providers.
10. Provides $7.5 million in one-time non-Proposition 98 funding for the Broadband Infrastructure Grant Program to improve broadband infrastructure in schools. Requires the CDE to contract with the Corporation for Education Network Initiatives in California (CENIC) to administer the program and identify broadband connectivity solutions to the most poorly connected school sites.
11. Prohibits charter schools from discouraging students from enrolling in a charter school or encouraging students to disenroll from a charter school on the basis of academic performance or student characteristic, or from obtaining specified student information prior to enrollment. Allows a charter school that exists as of July 1, 2019 that operates in partnership with the California National Guard to dismiss a pupil from the charter school for failing to maintain the minimum standards of conduct required by the California Military Department.
12. Requires CDE to conduct a study on the feasibility of using student enrollment data from the California Longitudinal Pupil Assessment Data System to identify potential instances of practices that discourage students from enrolling in charter schools.
13. Includes $3 million in one-time Proposition 98 funding for CDE to allocate to the Kern County Superintendent of Schools for the Fiscal Crisis and Management Assistance Team for the Standardized Account Code Structure system replacement project.
14. Provides $2 million in one-time Proposition 98 funding for the Southern California Regional Occupational Center (SoCal ROC) for instructional and operational costs in the 2019-20 fiscal year. Requires SoCal ROC to provide an updated operational plan to the DOF and the Legislative Analyst’s Office on or before September 1, 2019.
15. Provides an exemption for a school district with average daily attendance of more than 400,000 from administrator to teacher ratio penalties (calculated pursuant to Education Code Section 41404) for the 2019-20 through 2021-22 fiscal years. Requires annual reporting on the administrator to teacher ratio calculation for each year a school district receives a waiver under this provision, including historical information for past years and the school district's plan to meet the ratio requirements over time.
16. Extends the hold-harmless funding provisions to school districts and charter schools that experienced attendance losses as a result of the 2018 wildfires through 2020-21. Allows for the Paradise Unified School District to request the Fiscal Crisis Management Assistance Team to conduct an evaluation of the need for additional funding and statutory changes for the 2021-22 fiscal year.
17. Provides a backfill for wildfire affected basic aid school districts for property tax losses in 2018-19 and 2019-20.
18. Provides a backfill for special education programs for 2018-19 and 2019-20 to the extent that property tax revenues from Redevelopment Agency dissolution are not sufficient to cover the appropriation in the 2018 and 2019 Budget Acts for Special Education.
19. Creates the Breakfast After the Bell grant program. The CDE is charged with administering grants to LEAs to start-up or expand school breakfast programs that offer breakfast to students after the start of the school day.
20. Allocates $500,000 in one-time non-Proposition 98 funding to create a workgroup to increase the ability of schools to draw down federal funds for medically related services for students and improve the transition of thee-year olds with disabilities from regional centers to schools.
21. Provides $178,000 in 2019-20 and $154,000 ongoing for the SBE to enter into a contract with the San Joaquin County Office of Education to support maintenance of the California School Dashboard and the School Accountability Report Card.
22. Expands the Uniform Complaint Procedures to include complaints of non-compliance with required minimum instructional minutes for physical education for grades 9 to 12. This change conforms to the existing process for grades 1 to 8.
23. Requires local indicators used by LEAs for the Local Control Accountability Plan (LCAP) process to reflect school site-level data, if it is currently collected statewide by CDE, by January 31, 2020.
24. Extends the deadline for the CDE to develop the Special Education Local Plan Area (SELPA) assurances support template from March 31, 2019 to July 1, 2020. Additionally, extends the deadline for SELPAs to submit the assurances support plan from July 1, 2020 to July 1, 2021, to align with the development of the template.
25. Includes the Cal Grant: Opt-Out Notice and Grade Point Average Submission mandated program in the K-12 mandate block grant.
26. Provides $350,000 one-time Proposition 98 funding for the SBE to contract with the San Joaquin County Office of Education to merge the Dashboard, LCAP electronic template, and other local school site and school district reports into a single web-based application.
27. Specifies the state priorities that charter schools need to address in their Local Control and Accountability Plans (LCAPs), and clarifies that charter LCAPs need to be adopted at a public hearing and prominently posted online, and that charter schools are required to translate reports and notices if 15 percent or more of their enrolled students speak a primary language other than English. 
28. Aligns the treatment of in-lieu of property tax transfers for charter schools authorized on appeal by the SBE with the treatment of countywide benefit charter schools that serve students from a basic aid school district of residence.
29. Expands the list of non-waivable sections of law to include all Education Code sections that pertain to the LCFF apportionment calculations. Apportionment statutes are not subject to waiver by the SBE.
30. Extends through the 2019-20 fiscal year the existing funding allocation method for the Out-of-Home Care program for foster students with exceptional needs.
31. Makes technical and clarifying changes to the school site council requirements for schools and LEAs.
32. Specifies which appropriations are transferred through the K-12 portion of the State School Fund in order to streamline the apportionment accounting process for the CDE and the State Controller’s Office while still meeting statutory apportionment deadlines and satisfying the constitutional requirements of the pass-through fund.
33. Shifts Proposition 98 funding for part-day State Preschool at non-LEAs to the non-Proposition 98 General Fund and rebenches the Proposition 98 guarantee.
34. Extends the suspension of the Proposition 98 statutory split for K-12 education and community colleges for the 2019-20 fiscal year.
35. Allows for the Commission on Teacher Credentialing to receive donations, bequests, grants and philanthropic funding, subject to approval by the Director of Finance.
36. Specifies that specified one-time funding provided in the 2018-19 budget counts toward the Proposition 98 guarantee, including $4 million for the San Francisco Unified School District, $2 million for the Sweetwater Unified School District and $1.7 million for CDE for a suicide prevention program.
37. Provides $4 million one-time General Fund for the Special Olympics of Northern and Southern California.
38. Provides an exemption for Leggett Valley Unified School District and Big Sur Unified School District to operate on a four-day school week without penalties pursuant to meeting instructional minute requirements each year. In addition, the school districts are required to provide a plan to the CDE on meeting the instructional minute requirement in the following year. Amends statute to clarify that these school districts retain funding under the Local Control Funding Formula.
39. Makes technical and clarifying changes to the Career Technical Education Incentive Grant program and the K-12 Strong Workforce program, including updating the name of the related federal grant program and clarifying that a regional occupational center or program (ROCP) operated by a county office of education is also eligible to receive grant funding.
40. Clarifies the roles and responsibilities of the Agricultural Career Technical Education Unit within the CDE.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes

According to the Senate Budget and Fiscal Review Committee, the funding related to the changes in this bill is contained in the 2019-20 Budget Act. In addition, this bill appropriates funding for K-14 education programs, totaling approximately $1.2 billion.

SUPPORT: (Verified 6/13/19)

None received

OPPOSITION: (Verified 6/13/19)

None received

Prepared by: Elisa Wynne / B. & F.R. / 916-651-4103

6/19/19 16:38:08

**** END ****

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 75 Hearing Date: June 19, 2019

Subject: Education finance: education omnibus budget trailer bill

Summary:

Provides for statutory changes necessary to enact the K-12 statutory provisions of the Budget Act of 2019.

Background:

As part of the 2019-20 budget package, AB 75 makes statutory changes to implement the 2019-20 budget act.

Proposed Law:

Specifically, this bill:

Early Education

1. Provides $300 million in one-time General Fund for the Full-Day Kindergarten Facilities Grant program. Makes changes to the existing program to 1) prioritize schools converting part-day to full-day kindergarten programs, 2) increase the state matching share from 50 percent to 75 percent, 3) allow for any remaining grant funding to be used for other one-time costs to implement the full-day kindergarten program and 4) specifies that participation in the Full-Day Kindergarten Facilities Grant program does not impact a district’s eligibility in the School Facility Program.
2. Changes the eligibility requirements for the state preschool program to provide priority access to full–day state preschool program slots to income eligible families with a need for full-day care (parents are working or in school), with remaining full-day slots available for other income eligible families. In addition, for programs operating in a school attendance area of a public school where at least 80 percent of enrolled pupils are eligible for free or reduced-price meals, after all eligible children are enrolled, the program may enroll four-year-old children who do not meet the eligibility requirements but who reside within the attendance boundary of the public school, commencing January 1, 2020.
3. Requires the Secretary of the Health and Human Services, in concurrence with the executive director of the State Board of Education to contract for research to create a Master Plan to ensure comprehensive and affordable child care and universal preschool. Funding appropriated in the Budget Act for these purposes would be used for studies on the following: 1) a fiscal framework to expand early learning and care in the state; 2) early learning and care facility needs statewide; 3) needs for services by families eligible for subsidies; 4) a quality improvement plan to support all types of providers, and 5) steps necessary to provide universal pre-kindergarten for all three and four year old children. Studies shall be completed on a flow basis, but by October 1, 2020 at the latest.
4. Establishes the Early Learning and Care Infrastructure Grant Program to provide grants to child care and early education providers to build new facilities, or retrofit, renovate, or expand existing facilities. Competitive grants shall be available to providers to increase capacity or recover lost capacity as a result of a state or federal emergency through construction or renovation and modernization projects. The Superintendent of Public Instruction shall determine the process for awarding and managing the grants and may set aside up to five percent to contract with organizations to provide technical assistance. Up to five percent shall be set aside each fiscal year for renovation, repair, modernization, or retrofitting existing early learning and care facilities to address health and safety or other licensure needs for low-income providers. Appropriates $142.7 million to be expended over five years in equal amounts per year (in addition to $102.3 million in federal funds appropriated through the budget act for this program). Requires annual reporting to the Governor and the relevant policy and fiscal committees of the Legislature on the expenditure of funds and relevant outcome data.

In addition, eliminates the Child Care Revolving Loan Program and retains the related fund through December 31, 2029 for the purpose of collecting deposits from outstanding loan and lease payments. Revenues from these purposes will be transferred to the Early Learning and Care Infrastructure Grant program. In addition, this section specifies that remaining non-Proposition 98 fund balance in the Child Care Revolving Loan Fund (CCRLF) is transferred to this grant program, and the remaining $10 million in non-Proposition 98 funds from the CCRLF are transferred to the Inclusive Early Education Expansion Program.

1. Establishes the Early Learning and Care Workforce Development Grant Program to expand the number of qualified early learning and care professionals and increase education credentials for existing professionals. The Superintendent of Public Instruction shall award and administer grants, consistent with the Quality Rating and Improvement System local consortia, to local or regional quality improvement partnerships. Grants provided under this program may be used for costs associated with expenses related to education and professional development for all types of early learning and care professionals to increase educational attainment and/or development of competencies related to early childhood instruction and development. Appropriates $195 million for this program to be expended over five years in equal amounts per year. Up to one percent of funds may be set aside by the Superintendent for technical assistance to grantees and potential grantees. Requires annual reporting to the Governor and the relevant policy and fiscal committees of the Legislature on the expenditure of funds and relevant outcome data.
2. Provides $10 million in one-time General Fund for the Department of Education, Department of Social Services, Department of Human Resources and the Public Employment Relations Board for costs associated with implementing child care organizing. Requires each department to submit expenditure plans and allocates the funds contingent on Department of Finance approval and notification of the Joint Legislative Budget Committee. Requires the Department of Education and the Department of Social Services to collect contact information for child care providers to make available to provider organizations for organizing purposes.
3. Applies the reimbursement rate adjustment factor for children with exceptional needs to part-day state preschool programs. Rate adjustment factors are intended to account for the higher costs of serving children in specific categories. This specific rate adjustment factor previously applied only to full day state preschool programs.
4. Establishes the Early Childhood Policy Council to advise the Governor, the Legislature, and the Superintendent on statewide early learning and care policy, building on the work of the state’s Master Plan for Early Learning and Care and the 2019 California Blue Ribbon Commission on Early Childhood Education Final Report. The Council shall consult with a parent advisory committee and a workforce advisory committee. The Department of Education shall provide staffing to the Council and up to $300,000 of funds provided for the Council may be used for this purpose.
5. Delays the implementation of the requirement to provide 14-days notice to Alternative Payment child care providers before a family can receive a subsidy for a different provider until July 1, 2020.

K-12 Education

1. Creates the Special Education Early Intervention Preschool grant, provided to LEAs based on the number of three and four year olds with exceptional needs, specifically students with Individualized Education Plans (IEPs). Requires ongoing funding to be contingent upon the passage of legislation in the 2020-21 budget to reform the special education system to improve outcomes for students.
2. Brings all local educational agencies (LEAs) to the statewide base rate for special education funding.
3. Provides $368.4 million in one-time Proposition 98 “settle-up” funding in 2019-20 to allocate to school districts and community colleges for the purposes of reducing the outstanding Proposition 98 funding owed to schools for the 2009-10 fiscal year. Funding is provided for 2018-19 LCFF expenditures for school districts and charter schools and for other community college programs in the 2019-20 fiscal year.
4. Dedicates $89.8 million in one-time General Fund for the Golden State Teacher Grant program. The Student Aid Commission is charged with providing one-time grants of $20,000 to each student enrolled in a professional preparation program leading to a preliminary teaching credential, if the student commits to working in a high-need field at a priority school for four years after the student receives a teaching credential.
5. Establishes the Mental Health Student Services Act to create a competitive grant program to fund partnerships between county mental health or behavioral health departments and K-12 school districts, charter schools, and the county office of education within a county. The grant program is managed by the Mental Health Services Oversight and Accountability Commission. Funds would be available for expenditure across a five-year period. Grant funds shall be used for services provided on K-12 campuses, suicide prevention services, dropout prevention services, outreach to at-risk youth, placement assistance for ongoing services, and other services to respond to the mental health needs of students and youth.
6. Provides $38.1 million in one-time non-Proposition 98 funding for the Educator Workforce Investment Grant to provide competitive grants for professional learning opportunities for teachers and paraprofessionals. The Department of Education is charged with administering grants to one or more institutions of higher education or nonprofit organizations with expertise in developing and providing professional learning to teachers and paraprofessionals. Of this funding, $10 million is for professional development for the English Learner Roadmap adopted by the State Board of Education, $5 million is for special education related professional development and $22.1 million for professional development in other areas. These other areas include social-emotional learning, positive school climate, (including restorative justice), the computer science content standards and the ethnic studies model curriculum. Provides the Department of Education $250,000 each year for four years to implement the Educator Workforce Investment Grant program.
7. Appropriates $36 million in one-time Proposition 98 funding for the Classified School Employees Summer Assistance Program, created in the 2018-19 budget. Makes changes to the program to allow the funds to be available over three years, to increase the minimum salary requirements and to make other minor and technical changes.
8. Appropriates $10 million in one-time General Fund for the development of the California Cradle to Career Data System. Funding shall be provided the Governor’s Office of Planning and Research to contract with planning facilitators to lead a workgroup comprised of representatives from education, workforce, health, and other relevant agencies. By July 1, 2020, the workgroup shall report to the Department of Finance and the Legislature on the proposed structure of the data system, including governance, architecture and functionality of the system. By January 1, 2021, the workgroup shall report to the Department of Finance and the Legislature on additional details regarding the data system. Of the total funding, $2 million is available for the administrative costs of the workgroup process, $300,000 is available for the California Community Colleges, California State University, and University of California to integrate the use of Statewide Student Identifiers into their systems, and the remailing funds are available for initial implementation activities upon approval of an expenditure by the Department of Finance and notification to the Joint Legislative Budget Committee.
9. Establishes the 21st Century California School Leadership Academy, administered by the Department of Education and the California Collaborative for Educational Excellence (CCEE) to provide professional learning opportunities for school administrators and other school leaders, aligned with the statewide system of support. Eligible grantees include LEAs, institutions of higher education and nonprofit educational service providers.
10. Provides $7.5 million in one-time non-Proposition 98 funding for the Broadband Infrastructure Grant Program to improve broadband infrastructure in schools. Requires the Department of Education to contract with the Corporation for Education Network Initiatives in California (CENIC) to administer the program and identify broadband connectivity solutions to the most poorly connected school sites.
11. Prohibits charter schools from discouraging students from enrolling in a charter school or encouraging students to disenroll from a charter school on the basis of academic performance or student characteristic, or from obtaining specified student information prior to enrollment. Allows a charter school that exists as of July 1, 2019 that operates in partnership with the California National Guard to dismiss a pupil from the charter school for failing to maintain the minimum standards of conduct required by the California Military Department.
12. Requires CDE to conduct a study on the feasibility of using student enrollment data from the California Longitudinal Pupil Assessment Data System to identify potential instances of practices that discourage students from enrolling in charter schools.
13. Includes $3 million in one-time Proposition 98 funding for CDE to allocate to the Kern County Superintendent of Schools for the Fiscal Crisis and Management Assistance Team for the Standardized Account Code Structure system replacement project.
14. Provides $2 million in one-time Proposition 98 funding for the Southern California Regional Occupational Center (SoCal ROC) for instructional and operational costs in the 2019-20 fiscal year. Requires SoCal ROC to provide an updated operational plan to the Department of Finance and the Legislative Analyst’s Office on or before September 1, 2019.
15. Provides an exemption for a school district with average daily attendance of more than 400,000 from administrator to teacher ratio penalties (calculated pursuant to Education Code Section 41404) for the 2019-20 through 2021-22 fiscal years. Requires annual reporting on the administrator to teacher ratio calculation for each year a school district receives a waiver under this provision, including historical information for past years and the school district's plan to meet the ratio requirements over time.
16. Extends the hold-harmless funding provisions to school districts and charter schools that experienced attendance losses as a result of the 2018 wildfires through 2020-21. Allows for the Paradise Unified School District to request the Fiscal Crisis Management Assistance Team to conduct an evaluation of the need for additional funding and statutory changes for the 2021-22 fiscal year.
17. Provides a backfill for wildfire affected basic aid school districts for property tax losses in 2018-19 and 2019-20.
18. Provides a backfill for special education programs for 2018-19 and 2019-20 to the extent that property tax revenues from Redevelopment Agency dissolution are not sufficient to cover the appropriation in the 2018 and 2019 Budget Acts for Special Education.
19. Creates the Breakfast After the Bell grant program. The CDE is charged with administering grants to LEAs to start-up or expand school breakfast programs that offer breakfast to students after the start of the school day.
20. Allocates $500,000 in one-time non-Proposition 98 funding to create a workgroup to increase the ability of schools to draw down federal funds for medically related services for students and improve the transition of thee-year olds with disabilities from regional centers to schools.
21. Provides $178,000 in 2019-20 and $154,000 ongoing for the State Board of Education to enter into a contract with the San Joaquin County Office of Education to support maintenance of the California School Dashboard and the School Accountability Report Card.
22. Expands the Uniform Complaint Procedures to include complaints of non-compliance with required minimum instructional minutes for physical education for grades 9 to 12. This change conforms to the existing process for grades 1 to 8.
23. Requires local indicators used by LEAs for the Local Control Accountability Plan (LCAP) process to reflect school site-level data, if it is currently collected statewide by CDE, by January 31, 2020.
24. Extends the deadline for the CDE to develop the Special Education Local Plan Area (SELPA) assurances support template from March 31, 2019 to July 1, 2020. Additionally, extends the deadline for SELPAs to submit the assurances support plan from July 1, 2020 to July 1, 2021, to align with the development of the template.
25. Includes the Cal Grant: Opt-Out Notice and Grade Point Average Submission mandated program in the K-12 mandate block grant.
26. Provides $350,000 one-time Proposition 98 funding for the State Board of Education to contract with the San Joaquin County Office of Education to merge the Dashboard, LCAP electronic template, and other local school site and school district reports into a single web-based application.
27. Specifies the state priorities that charter schools need to address in their Local Control and Accountability Plans (LCAPs), and clarifies that charter LCAPs need to be adopted at a public hearing and prominently posted online, and that charter schools are required to translate reports and notices if 15 percent or more of their enrolled students speak a primary language other than English. 
28. Aligns the treatment of in-lieu of property tax transfers for charter schools authorized on appeal by the State Board of Education with the treatment of countywide benefit charter schools that serve students from a basic aid school district of residence.
29. Expands the list of non-waivable sections of law to include all Education Code sections that pertain to the LCFF apportionment calculations. Apportionment statutes are not subject to waiver by the State Board of Education.
30. Extends through the 2019-20 fiscal year the existing funding allocation method for the Out-of-Home Care program for foster students with exceptional needs.
31. Makes technical and clarifying changes to the school site council requirements for schools and local educational agencies.
32. Specifies which appropriations are transferred through the K-12 portion of the State School Fund in order to streamline the apportionment accounting process for the Department of Education and the State Controller’s Office while still meeting statutory apportionment deadlines and satisfying the constitutional requirements of the pass-through fund.
33. Shifts Proposition 98 funding for part-day State Preschool at non-local educational agencies to the non-Proposition 98 General Fund and rebenches the Proposition 98 guarantee.
34. Extends the suspension of the Proposition 98 statutory split for K-12 education and community colleges for the 2019-20 fiscal year.
35. Allows for the Commission on Teacher Credentialing to receive donations, bequests, grants and philanthropic funding, subject to approval by the Director of Finance.
36. Specifies that specified one-time funding provided in the 2018-19 budget counts toward the Proposition 98 guarantee, including $4 million for the San Francisco Unified School District, $2 million for the Sweetwater Unified School District and $1.7 million for CDE for a suicide prevention program.
37. Provides $4 million one-time General Fund for the Special Olympics of Northern and Southern California.
38. Provides an exemption for Leggett Valley Unified School District and Big Sur Unified School District to operate on a four-day school week without penalties pursuant to meeting instructional minute requirements each year. In addition, the school districts are required to provide a plan to the Department of Education on meeting the instructional minute requirement in the following year. Amends statute to clarify that these school districts retain funding under the Local Control Funding Formula.
39. Makes technical and clarifying changes to the Career Technical Education Incentive Grant program and the K-12 Strong Workforce program, including updating the name of the related federal grant program and clarifying that a regional occupational center or program (ROCP) operated by a county office of education is also eligible to receive grant funding.
40. Clarifies the roles and responsibilities of the Agricultural Career Technical Education Unit within the Department of Education.

Comments: This bill makes various changes to implement budget actions related to K-12 and early education, adopted as part of the 2019-20 Budget package.

Fiscal Effect:

The funding related to the changes in this bill is contained in the 2019-20 Budget Act. In addition, this bill appropriates funding for K-14 education programs, totaling approximately $1.2 billion.

Support:

None on File

Opposed:

None on File

Comments:

This bill provides the necessary statutory changes to enact the 2019-20 budget related to K-12 education.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 75

Author:(Ting)

As Introduced Ver:December 3, 2018

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

Major Provisions

COMMENTS:

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

UPDATED:

VERSION: December 3, 2018

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000118