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

 THIRD READING  

Bill No: AB 77

Author: Committee on Budget

Amended: 6/23/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-5, 6/24/20

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

NOES: Nielsen, Dahle, Melendez, Moorlach, Morrell

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 2020.

ANALYSIS: This bill, as part of the 2020-21 Budget package, makes statutory changes to implement the 2020-21 Budget Act. Specifically, this bill:

K-12 Education

1. Extends the deadline for the Department of Education to develop a standardized English language teacher observation protocol for use by teachers in evaluating a pupil’s English language proficiency from June 30, 2020, to December 31, 2021.
2. Amends various sections of Education Code to specify that amounts calculated for the Local Control Funding Formula and specified other calculations are considered final as of the certification of the second principal apportionment after five years.
3. Defers a total of $11 billion in principal apportionment payments to local educational agencies (LEAs) from the 2020-21 fiscal year to the 2021-22 fiscal year in the amounts of $1.5 billion from February to November of 2021, $2.4 billion from March to October of 2021, $2.4 billion from April to September of 2021, $2.4 billion from May to August of 2021, and $2.4 billion from June to July of 2021. This bill also defers $1.9 billion in principal apportionment payments to LEAs from June 2020 to July 2021. If, pursuant to Control Section 8.28 of the Budget Act of 2020, the Director of Finance determines that there are sufficient federal funds provided to the state for the 2020-21 fiscal year that may be used to offset the deferral amounts, the Director of Finance shall reduce the deferral amounts starting with the deferrals occurring earliest in the 2020-21 fiscal year.
4. Allows for up to $100 million in each of February, March, April, May, and June of 2020-21 of the warrants to be deferred in each of these months to instead be drawn in the month they were scheduled to be paid originally for LEAs that meet specified fiscal hardship exemption requirements.
5. Reverts $300 million in available unspent funds from the full-day kindergarten facilities grant program to the General Fund, make future allocations from the program contingent upon appropriation by the legislature, and make other technical amendments.
6. Allows school districts to deposit proceeds from the sale or lease of surplus property into the general fund of the school district for one-time general fund purposes with specified conditions through the 2023-24 fiscal year.
7. Eliminates the requirement for the approval by the State Board of Education for school district joint occupancy agreements.
8. Limits appeals to the State Board of Education regarding school district territory transfers by prohibiting appeals when a county committee on school district reorganization disapproves a territory transfer.
9. Extends deadlines for local education agencies to provide for an audit, and for the related oversight and reporting requirements.
10. Suspends the statutory split of Proposition 98 funding between K-12 education and California Community Colleges in the 2020-21 fiscal year.
11. Provides a new multi-year payment obligation designed to supplement funding provided by Proposition 98. This new obligation would designate 1.5 percent of General Fund Revenues per year to K-14 education beginning in 2021-22 to provide $12.4 billion over a multi-year period. This funding would accelerate the recovery of the Proposition 98 Guarantee from reductions due to the impact of COVID-19 and increase the Proposition 98 share of General Fund from 38 to 40 percent in a Test 1 year by 2023-24.
12. Extends the timeline for the Fiscal Crisis and Management Assistance Team to complete the required written status report for school districts who have received emergency loans from every six months, to an annual report. This bill makes technical amendments to the process by which school district budgets are reviewed and technical clean-up to update the activities of the Fiscal Crisis and Management Assistance Team in statute with actual practice. This bill also makes technical amendments to the process for audit exceptions for local educational agencies.
13. Exempts specified employees of the Fiscal Crisis Management and Assistance Team and the California School Information Services, from the merit system.
14. Amends provisions of AB 1505 (O’Donnell, Chapter 486, Statutes of 2019) and provisions of AB 1507 (Smith, Chapter 487, Statutes of 2019), relating to charter schools to specify how fiscal apportionments are made to charter schools that were required to make changes under those statutes. This bill also includes clarifying amendments to grandfather in existing charter schools operated by or located on tribal land from AB 1507 location requirements.
15. Allows school districts, for the 2020-21 and 2021-22 fiscal years if the state enacts deferrals of payments owed to school districts, to use inter-fund borrowing of up to 85 percent between funds for payment of obligations to help mitigate any necessary cash deferrals related to the economic impacts of the COVID-19 pandemic. Districts exercising this option would be required to hold a public hearing prior to considering a resolution authorizing the temporary transfer.
16. Specifies the following related to instruction, attendance, and calculation of apportionments in the 2020-21 fiscal year:
    1. A hold-harmless is provided for the purpose of calculating apportionment in the 2020-21 fiscal year; the Department of Education shall use the average daily attendance in the 2019-20 fiscal year reported from July 1, 2019, to February 29, 2020, as specified in this bill, except for new charter schools commencing instruction in 2020-21.
    2. LEAs shall offer in-person instruction to the greatest extent possible and may offer distance learning, as defined.
    3. LEAs are required to meet instructional day requirements through a combination of in-person and distance learning instruction, however, LEAs are allowed to only meet minimum-day instructional minute requirements and are exempted from minimum instructional minute requirements for physical education.
    4. Instructional minutes shall be determined for in-person instruction as time under the immediate physical supervision of a certificated employee of the LEA and for distance learning based on the time value of assignments as determined and certified by a certificated employee of the LEA, or a combination of both instruction types.
    5. LEAs that offer distance learning must comply with specified requirements. Distance learning may be provided on a LEA-wide or schoolwide basis pursuant to an order or guidance from a state or local public health officer, and for pupils who are medically fragile, at-risk from in-person instruction, or quarantining due to exposure to COVID-19. Instructional requirements are defined specific to the access and content of instruction, supports for students with exceptional needs, English learner students, students in foster care, experiencing homelessness or in need of mental health supports. Daily interaction with students in distance learning is defined, and LEAs are required to provide access to nutrition programs.
    6. For purposes of attendance, an LEA must document daily student participation, as defined, when providing distance learning, and keep weekly engagement records. LEAs shall continue to report absences, as defined, for purposes of reporting chronic absenteeism. LEAs shall developed tiered re-engagement strategies for students who do not participate, and shall regularly engage with parents or guardians regarding academic progress. Requirements shall be included in the audit guide.
    7. Fiscal penalties are defined for LEAs that do not meet the instructional day requirements or the attendance related requirements.
    8. Charter schools offering distance learning pursuant to this section of this bill are not required to request a material revision to the charter. Classroom based charter schools that offer distance learning pursuant to this section will not be considered a non-classroom based charter in the 2020-21 fiscal year if they provide distance learning.
17. Requires that, in place of the Local Control Accountability Plan previously required on December 15, 2020 pursuant to Executive Order N-56-20, an LEA is required to adopt a Learning Continuity and Attendance Plan (2020-21 LCAP) by September 30, 2020. The local control funding formula budget overview for parents shall be required to be adopted by December 15, 2020, with the first interim budget report. In adopting the 2020-21 LCAP pursuant to this section, the governing body of the LEA shall consult with stakeholders, as specified, including the parent advisory committee and the English learner parent advisory committee, solicit stakeholder input and hold two public hearing to present the 2020-21 LCAP and for the adoption of the 2020-21 LCAP. Schools districts shall submit the 2020-21 LCAP to the county superintendent of schools, county offices of education shall submit the 2020-21 LCAP to the Superintendent of Public Instruction, and charter schools shall submit the 2020-21 LCAP to their chartering authority within five days after adoption. The County Superintendent of Schools and the Superintendent of Public Instruction may review and comment on the 2020-21 LCAPs by October 30, 2020. The template for the 2020-21 LCAP shall be developed by the Superintendent of Public Instruction, in consultation with the executive director of the State Board of Education, by August 1, 2020, that includes, but is not limited to the following:
    1. A description of how the LEA will provide continuity of learning and address the impacts of COVID-19 on pupils, staff, and the community in the following areas and the specific expenditure the LEA anticipates taking to support its ability to address the impacts of COVID-19:
       1. Distance Learning
       2. Learning Loss
       3. Mental Health / Social Emotional Well-being of students and staff
       4. Professional Development
       5. Pupil Engagement and Outreach
       6. School Nutrition
    2. For each area, the 2020-21 LCAP shall describe how state and federal funds (including funds provided for the Learning Loss Block Grant) are anticipated to be used to support the efforts described in the 2020-21 LCAP. If the actions and expenditures described in the 2020-21 LCAP are not included in the LEA’s budget, the plan shall describe how they will be included in the first interim budget report.
    3. The 2020-21 LCAP shall also include a description of how the LEA is increasing or improving services in proportion to funds generated on the basis of the number and concentration of English learner, foster youth, and low income students pursuant to the Local Control Funding Formula, and in compliance with regulations adopted by the State Board of Education.
    4. The 2021-22 Annual Update to the Local Control and Accountability Plan shall include the actions and expenditures included in the 2020-21 LCAP.
18. Specifies the amount to be withheld from the Local Control Funding Formula entitlement for a county office of education that operates a special day class or classes and does not offer the required minimum number of instructional days or instructional minutes.
19. Extends by one year the deadline that requires transitional kindergarten teachers to obtain 24 units of early childhood education as part of their education requirements.
20. Provides the Superintendent of Public Instruction with the authority to determine alternative criteria for students to meet the State Seal of Biliteracy requirements due to COVID-19 constraints.
21. Amends requirements for the Student Performance and Stakeholder Engagement section of the Local Control and Accountability Plan template to be adopted by the State Board of Education by January 31, 2022
22. Makes technical edits to the operations of the California Collaborative for stakeholder engagement.
23. Extends by one year, the grant period for the Bilingual Teacher Professional Development Grant.
24. Provides for various flexibilities for the Migrant Education Program. Specifically this bill suspends requirements for 2020 parent advisory council nominations and elections until September 2020, decreases the required number of regional parent advisory council meetings in 2020 from six to three meetings, decreases the required number of State Parent Advisory Council meetings in 2020 from six to three meetings, suspends the requirement that the State Superintendent of Public Instruction sponsor a biennial State Parent Advisory Council Conference in 2020, allows summer school programs to be offered through distance learning for the 2020 calendar year, waives the instructional minute requirements for summer school instruction in 2020, but encourages local educational agencies to offer the minimum instructional minutes to the extent practicable for the 2020 calendar year.
25. Suspends the requirement that school districts, county offices of education, and community college districts make facilities available for Migrant Education Summer School programs in 2020 if facilities are closed due to the COVID-19 pandemic.
26. Provides a moratorium from establishing new single district Special Education Local Plan Areas (SELPAs) for the 2020-21 through the 2023-24 fiscal year.
27. Provides a two-year extension to the date by the Department of Education must develop and the date by which a SELPA must include, an annual assurances support plan in the local plan for education of all individuals with exceptional needs.
28. Provides for a one-year extension, to October 1, 2021, for when recommendations are provided from a workgroup related to improving the transitions of three-year olds to LEAs from regional centers, and improving access to and coordination of LEA Medi-CAL billing and other programs. This bill also requires the workgroup to provide a progress report by October 1, 2020, and extends the availability of funding for this purpose.
29. Creates a new special education funding formula, commencing with the 2020-21 fiscal year, that provides SELPAs with the greater of $625 per average daily attendance or the per ADA rate the SELPA received in 2019-20, and applies COLA in future years to the statewide base rate. COLA is not provided in the 2020-21 fiscal year. This bill repeals statutes related to the current Special Education funding program, freezes funding at the 2019-20 levels for most add-on adjustments, and makes various other related technical amendments.
30. Extends through the 2020-21 fiscal year the existing funding allocation method for the Out-of-Home Care program for foster students with exceptional needs.
31. Requires an Individualized Education Plan to include a description of how services will be provided to students in an emergency situation, in the development of a new IEP or at the next regularly scheduled review of an existing IEP.
32. Provides a backfill for special education programs for 2020-21 to the extent that property tax revenues from Redevelopment Agency dissolution are not sufficient to cover the appropriation in the 2020 Budget Acts for Special Education
33. Specifies that an LEA may claim apportionment for extended school year services for pupils with disabilities offered through distance learning in the summer of 2020 that meets specified requirements.
34. Expands the allowable use of Educationally-Related Mental Health Services funds to include mental health services for all students beginning in the 2020-21 fiscal year. Currently funds are restricted to education-related mental health services that are included in individualized education plans.
35. Extends the reporting date for Multi-tiered System of Support (SUMS Project) from June 2020 to June 30, 2021 because the project cannot collect the necessary data from participants due to COVID-19 school closures.
36. Prevents school districts, charter schools, and county offices of education from expending funds Proposition 98 funds for courses or instruction offered by private or public colleges or universities beyond what is required in pursuit of a high school diploma, except for courses or instruction in which students are enrolled in prior to July 1, 2020.
37. Removes the Academic Performance Index from the Mandate Block Grant, as it is no longer calculated.
38. Requires the State Controller’s Office, in consultation with the Department of Finance, to develop guidance by December 31, 2020 for the allocation of K-12 Educational Revenue Anticipation Fund (ERAF) by County Auditor Controllers commencing with calculations for the 2019-20 fiscal year.
39. Establishes the California Newcomer Education and Well-Being (CalNEW) program to be administered by the Department of Social Services to funding to school districts to support refugee children, unaccompanied minors, and English learner students.
40. Includes amendments to reduce Item 6100-158-0001 of the Budget Act of 2019 (Chapter 23, 55, 80, and 363 of the Statutes of 2019) by $9,765,000 Proposition 98 General Fund to reflect savings related to the unexpended balance of the Adults in Correctional Facilities Program.
41. Clarifies the provisions of Executive Order N-26-2020 and SB 117 (Committee on Budget and Fiscal Review, Chapter 3, Statutes of 2020) on July 1, 2020 and makes other technical amendments.
42. Includes legislative intent language to evaluate the use of police officers and other law enforcement on school campus, consider other alternatives to ensure student safety, and consider encouraging LEAs to use school resources currently allocated to law enforcement for other student support services.
43. Prevents school districts from terminating certificated employees from July 1, 2020, to July 1, 2021, with the exception of those employees in positions that require administrative or supervisory credentials.
44. Prevents the governing boards of school districts, community college districts, county offices of education, or joint powers authorities from terminating classified employees for lack of funds or lack of work if they hold classifications or are in positions in nutrition, transportation, or custodial services from July 1, 2020, to July 1, 2021. Includes legislative intent language that school districts, community college districts, joint powers authorities, and county offices of education retain all classified employees in the 2020-21 fiscal year.
45. Allows the Superintendent of Public Instruction to waive various requirements of the Afterschool Education and Safety program as needed to provide flexibility for the 2020-21 school year and to prorate funding rates for programs offering more than three hours a day and up to six hours a day.
46. Specifies the process for the state to recoup an overpayment of funds provided to the Guerneville Elementary School District through a multi-year repayment plan.
47. Requires the State Controller’s Office to recapture Local Control Funding Formula state aid overpayments from the second principal apportionment to LEAs for deposit into the Educational Protection Account and provide the fourth quarter Educational Protection Account payment still owed to LEAs by August 15, 2020.
48. Waives the requirement that the Fiscal Crisis and Management Assistance Team complete a comprehensive review of Inglewood Unified School District in 2019-20 due to COVID-19 constraints.
49. Extends the testing window for the English Language Proficiency Assessment for California (ELPAC) into the fall of 2020 to be used for the reclassification of pupils from English learner to English proficient.
50. Specifies that the State Board of Education shall not publish the California School Dashboard (Dashboard) in December 2020, specifies that valid and reliable data shall be published on the DataQuest website or through other means and specifies that LEAs identified for technical assistance or intervention pursuant to the 2019 Dashboard remain identified until the release of the 2021 Dashboard.
51. Allows a charter school that is scheduled to open or add a grade level for the 2020-21 school year to delay opening or adding a grade for one year without submitting a material revision to its chartering authorizer.
52. Appropriates $60 million in one-time Proposition 98 General Fund for the Classified Employee Summer Assistance Program for the 2021-22 program cohort. Specifies that the remaining balance funds made available in the 2018 Budget Act for the Classified School Employee Assistance program, shall be available for purposes increasing rates for the 2020-21 cohort of program participants, as included in the April 30, 2020 notification by the Department of Education.
53. Appropriates $1 million in one-time Proposition 98 General Fund for the Southern California Regional Occupational Center for instructional and operational costs.
54. Appropriates a total of $5.3 billion in one-time funding ($4.4 billion federal Coronavirus Relief Fund, $355.2 million federal Governor’s Emergency Education Relief Fund and $540 million Proposition 98 General Fund) to address learning loss and other impacts of COVID-19. Of this total, $1.5 billion is allocated to LEAs, with the exception of non-classroom based charter schools, on the basis of the enrollment of students with exceptional needs (ages 3-22), $2.9 billion is allocated to LEAs, with the exception of non-classroom based charter schools, on the basis of the proportion of Supplemental and Concentration grant funding each LEA receives of the total statewide Supplemental and Concentration grant funding, and $980 million is provided to all LEAs in proportion to the amount of Local Control Funding Formula funding each LEA receives. Federal funds must be expended within specified federal time frames and funding must be used to directly support pupil academic achievement and mitigate learning loss related to COVID-19 school closures, including academic programs, services, and supports to address learning loss, extended instructional minutes and services, additional materials, including devices or internet connectivity, and other supports related to health, mental health, professional development, and school meals among others.
55. Appropriates $50 million in one-time Proposition 98 funding to the Department of Education for the Early Literacy Support Block Grant to provide grants (over a three-year period) to LEAs with the 75 schools with the highest percentage of pupils in grade three scoring at the lowest standard achievement level on the English Language Arts assessment. LEAs receiving grants shall conduct a root-cause analysis, create a literacy action plan, and provide for supplementary activities for children in grades Kindergarten through three. The Department of Education may retain $3 million of the total for the costs of administering the program.
56. Appropriates $3 million in one-time Proposition 98 funding to establish an expert lead in literacy within the statewide system of support.
57. Appropriates $450,000 in one-time Proposition 98 funding to support the alignment and integration of the online platforms for the California School Dashboard, the Local Control and Accountability Plan electronic template system, and the School Accountability Report Card.
58. Appropriates $45 million in one-time Federal Elementary and Secondary Schools Emergency Relief Funds for a California Community Schools Partnership Program. Grants for this program are to be awarded on a competitive basis to LEAs, including county offices of education to support and expand existing community schools. Funds are available over a four year period.
59. Appropriates $112.2 million in one-time Federal Elementary and Secondary Schools Emergency Relief Funds for LEA school meal reimbursements during summer break and COVID school closures, at a rate of up to 75 cents per meal. Allows state reimbursement funds from 2019-20 to be used for disaster relief for LEAs who did or attempted to serve student meals during the school closure period.
60. Appropriates $4.2 million in one-time Proposition 98 General Fund for the Standardized Account Code Structure System replacement project.
61. Appropriates $750,000 in one-time Proposition 98 General Fund for the development of draft distance learning curriculum and instructional guidance in English language arts and mathematics to be developed by the Sacramento County Office of Education, to be adopted by the State Board of Education by May 31, 2021.
62. Appropriates $4 million in one-time Proposition 98 General Fund create the California Dyslexia Initiative to be allocated to a county office of education to increase statewide resources for early interventions, and supports for addressing specific learning disabilities, such as dyslexia.
63. Includes amendments to grant local educational agencies the authority to exclude the consideration of all state pension payments on behalf of local educational agencies rom general fund expenditures for the purposes of the Routine Restricted Maintenance Account calculation.
64. Appropriates $200,000 in one-time General Fund to the Department of Education for a Young People’s Task Force that will develop guidance to promote culturally competent interactions between young people and school resource officers on school campuses, contingent upon future legislation in the 2019-20 Regular Session.

Early Education and Development

1. Adds the Early Childhood Development Act to transfer all child care programs, with the exception of the California State Preschool Program from the Department of Education to the Department of Social Services, commencing July 1, 2021. Establishes the position of Deputy Director of Child Development within the Department of Social Services, to be appointed by the Governor and confirmed by the Senate. The Department of Social Services, in consultation with the Department of Education is required to provide a report detailing the transition and planning efforts by March 31, 2021 and quarterly updates from October 1, 2020, to December 31, 2024.
2. Amends the growth adjustment for child care programs, including state preschool, based on population growth of children ages zero to four, to be applied only when the adjustment is greater than zero.
3. Provides a hold harmless for child care providers operating contracts with the Department of Education (California State Preschool Programs, General Child Care Programs, Family Childcare Home Education Networks, Migrant Child Care and Development Programs, and Programs for children with Special Needs) for the 2020-21 fiscal year. Specifically, for those providers who remain open or re-open within a specified time frame, or are closed by a local or state public health order, reimbursement shall be at 100 percent of the maximum contract amount or 100 percent of enrollment, whichever is greater. This bill further requires child care programs that remain closed due to a health order to provide distance learning services.
4. Specifies that commencing July 1, 2020, alternative payment programs shall provide notice, including the effective date, of any changes to rates, care schedules, fees, or terminations to childcare providers on the same day a notice of action is issued to a family.
5. Requires alternative payment agencies to provide specified data about childcare caseload in the alternative payment program to the Department of Education on a monthly basis.
6. Specifies that unspent General Funds provided for the Early Learning and Care Infrastructure Grant Program and the Early Learning and Care Workforce Development Grants Program shall revert to the General Fund on June 30, 2020.
7. Eliminates 10,000 full-day non-LEA state preschool slots provided in the 2019 Budget Act and reverts $31.4 million to the General Fund. This bill also decreases funding for the LEA State Preschool Program in the 2019 Budget Act by $110.4 million Proposition 98 General Fund to reflect savings related to the unexpended program balance.
8. Allocates $152.3 million Federal Trust Fund Child Care and Development Block Grant Supplemental Fund in fiscal year 2019-20 for transfer to the General Fund to offset $152.3 million in costs associated with the states response to mitigating the COVID-19 impact on child care programs. The state costs incurred provided assistance and relief to child care providers and families in 2019-20 in immediate response to the COVID-19 pandemic as follows: $50 million allocated for child care services provided to workers deemed essential during the response to COVID-19 and at-risk children and $50 million to child care providers for the purposes of cleaning, sanitation, and other activities necessary to maintain or resume the operation of programs pursuant to SB 89 (Committee on Budget and Fiscal Review, Chapter 2, Statutes of 2020), and $44.3 million (including $3.3million for CalWORKS Stage 1 family fee suspension) for continued payments and assistance to child care providers and families as a result of decreased enrollment or closures related to COVID-19, and $8 million to be provided for a 30-day extension of the family fee waiver for child care programs, consistent with Executive Order N-66-20.
9. Appropriates $198 million Federal Trust Fund Child Care and Development Block Grant Supplemental Fund for the following:
   1. $62.5 million to support alternative payment programs to reimburse providers at families’ certified need, regardless of attendance, until June 30, 2021, or until funds are exhausted.
   2. $62.5 million in flat rate, per child stipends for alternative payment programs based on the number of subsidized children enrolled and the average cost of care.
   3. $73 million to extend child care for children of essential workers and at-risk children who received care with the $50 million provided for care under SB 89 (Committee on Budget and Fiscal Review, Chapter 2, Statutes of 2020), for at least 90 days. Further extends any unspent funds from the $50 million provided for care under SB 89 (Committee on Budget and Fiscal Review, Chapter 2, Statutes of 2020) for the same purpose of extending care for families. Prioritizes these children for permanent enrollment in available capacity within the alternative payment program if they meet program requirements.
10. Specifies that if additional federal funds are received for these purposes in the 2020-21 fiscal year, the Department of Education shall prioritize funds as follows:
    1. Up to $100 million for alternative payment providers to extend access to child care for children of essential workers, at risk children, and other eligible children as specified, in order of priority.
    2. Up to $50 million to increase capacity for up to two years for general child care programs and state preschool programs.
    3. Up to $25 million in stipends to assist child care providers with the costs of re-opening.
    4. Up to $125 million in stipends to assist all subsidized child care providers.

Commission on Teacher Credentialing

1. Extends for one year the time of validity of exam scores used to satisfy a requirement for the issuance of a teaching credential, certificate, permit, or waiver for scores between March 19, 2020, and June 30, 2021.
2. Extends to 120 days the time of validity of fees submitted to the Commission on Teacher Credentialing with paper applications for teaching credentials not available for online renewal or recommendation.
3. Reduces the requirement for the field practice assignment for a pupil services credential to take place in only one school setting from March 19, 2020, to June 30, 2021, instead of two or more school settings.
4. Makes various other technical changes.

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 2020-21 Budget Act. In addition, this bill appropriates funding for K-14 education programs, totaling approximately $5.8 billion.

SUPPORT: (Verified 6/23/20)

None received

OPPOSITION: (Verified 6/23/20)

None received

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

6/25/20 0:46:54

**** END ****

(Without Reference to File)

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 77

Author:(Committee on Budget)

As Amended Ver:June 23, 2020

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This is the Education Omnibus trailer bill for the 2020 budget. It implements all the appropriations and actions of the K-12 schools Proposition 98 Budget Package and early childhood education, including Local Control Funding Formula, deferrals for 2020-21 school year, federal aid, the “School Finance, Instruction and Accountability Act of 2020-21,” and the transition of child development programs to the Department of Social Services.

The Senate Amendments:

1. Deletes the contents of the bill and instead:Adopts the May Revise "Supplemental Payment" schedule for the difference between total Prop 98 funding level and Test Two in the Guarantee, at 1.5% of General Fund each year, for a total Prop 98 funding level of up to 40% of General Fund, beginning 2021-22. This total difference is estimated to be $12.366 Billion, based on the Test One calculation for 2020-21 in the Budget Act.
2. Defers an ongoing total of $3.428 billion in funding from the 2020-21 budget year to the 2021-22 budget year. If increased federal aid is not appropriated, an additional $5.7 billion in 20-21 deferrals is authorized. Creates authority for up to $300 million in deferral hardship funds for local education agencies (LEAs).
3. Allocates $7.150 Billion in discretionary state and federal funds for one-time COVID-19 impacts on K-12 schools and children.
4. Provides an increase of $645 million Proposition 98 funding for special education services and supports: $545m to base rate increases, $100m for low-incidence pool increase.
5. Extends the 2019-ADA Hold Harmless to the 2020-21 School Year for all LEAs, contingent on in-person instruction or distance learning parameters, student participation reporting, and local Learning Continuity and Attendance plan elements.
6. Maintains instructional day requirements but allows flexibility for instructional minutes in 2020-21 School Year.
7. Rejects the May Revise 10% trigger cuts to all child care programs and growth adjustment reductions to Alternative Payment programs, General Child Care (GCC), and California State Preschool Program (CSPP).
8. Provides increased Child Care and Development Block Grant (CCDBG) for Alternative Payment Programs (CAPP).
9. Provides $350 million CARES Act one-time CCDBG funding for CAPP, SB 89 (2020) backfill, and child care provider stipends
10. Provides Hold Harmless to all state-subsidized childcare providers for attendance if open in 20-21.
11. Adopts a "Child Care Trigger" for anticipated $300 million in new federal CCDBG aid, to fund additional child care access, re-opening grants for centers and family child care homes, and provider stipends based on market costs.
12. Delays development of observation protocol for Teachers of English Learners from June 30, 2020 to December 31, 2021.
13. Provides Hold Harmless to direct-contract childcare providers for child attendance if open in 2020-21, and if closed due to public health closure order, and directs the department to fund contracts at 100% attendance or 100% reimbursable costs. Closed providers are required to provide distance learning services.
14. Appropriates $350.314 million in federal one-time CCDBG CARES Act funds for child care costs in 2019-20 and 2020-21:
    1. Funds $50 million in child care cleaning and safety supplies through Resource & Referral agencies, originally funded by SB 89.
    2. Funds and allows rollover of $50 million SB 89 Essential Worker Child Care vouchers into 20-21.
    3. Funds an elimination of family fees for state-subsidized child care through June 30, 2020.
    4. Provides up to $62.5 million for hold harmless funding for CAPP and CalWORKS providers at 100% of certificated need, instead of child attendance, through the fiscal year.
    5. Funds up to $62.5million for one-time child care provider stipends for CAPP and CalWORKS providers, to offset additional costs during the COVID-19 pandemic.
    6. Provides an additional $73 million for one-time essential worker CAPP child care vouchers; Prioritizes vouchers for continuing the enrollment of families pursuant to SB 89 for up to an additional 90 days of care.
15. Rejects January Budget and May Revise General Fund and Prop 98 reductions to Alternative Payment programs, General Child Care, and California State Preschool Program for negative growth, and makes ongoing code change to eliminate negative growth adjustments for all capped child care programs.
16. Replaces the 14-day child care provider notice period for when a parents changes providers with same-day notice.
17. Requires alternative payment (CAPP) programs to report same program data to CDE as already provided for CalWORKS Stages 2-3 programs.
18. Eliminates $235 million in one-time funding, appropriated in the 2019-20 Budget Act, for Child Care Infrastructure Grants.
19. Eliminates $150 million in one-time funding, appropriated in the 2019-20 Budget Act, for Child Care Workforce Grants.
20. Provides conformity for final certification of Local Control Funding Formula (LCFF) calculations to revenue limit timelines, at 5 years.
21. Defers an ongoing total of $3.428 billion in funding from the 2020-21 budget year to the 2021-22 budget year. Lack of federal aid triggers an additional $5.7 billion in 2020-21 deferrals.
22. Creates a hardship fund for local education agencies (LEAs) unable to afford deferrals in 2019-20 and 2020-21, for up to $300 million.
23. Eliminates $300 million in one-time funding, appropriated in the 2019-20 Budget Act, for full-day Kindergarten facilities through the Office of Public School Construction.
24. Through July 1, 2024, allows proceeds from the sale of surplus LEA-funded facilities to be used for general fund purposes.
25. Eliminates State Board of Education (SBE) review of LEA Joint Use Occupancy agreements.
26. Provides authority and timelines for County Offices of Education (COEs) to furnish LEA audits in 2019-20.
27. Restricts SBE review of property transfers impacting LEA boundaries, for appeals filed after July 1, 2020.
28. Adds intent language regarding LEA decisions for use of peace officers on school campuses.
29. Suspends the statutory split of Proposition 98 funds between K-12 education and community colleges for the 2020-21 fiscal year, in conformity with annual suspensions since 1992-93.
30. Consolidates FCMAT reporting to annual reporting, for all LEA emergency loans.
31. Clarifies LEA apportionment excess or deficiency audit conclusions.
32. Requires the statutory LCFF COLA and childcare COLA to be zero for 2020-21.
33. Prohibits use of LCFF funds for new college enrollments and tuition, starting July 1, 2020, with the exception of students already enrolled for the 2020-21 school year.
34. Provides clean-up to FCMAT and AB 1200 statutes to conform to existing school fiscal distress practices, including conforming to current FCMAT indicators, and a requirement that LEAs demonstrate ability to meet financial obligations for two subsequent years.
35. Creates the "School Finance, Instruction, and Accountability Act of 2020-21 School Year" which does the following:
36. Provides a hold-harmless for the purpose of calculating apportionment in the 2020-21 fiscal year; the Department of Education shall use the average daily attendance in the 2019-20 reported from July 1, 2019 to February 29, 2020, as specified in the bill, except for new charter schools commencing instruction in 2020-21, for LEAs that comply with the 2020-21 requirements for instruction.
37. Expects LEA to offer in-person instruction to the greatest extent possible and permits distance learning for purposes of attendance, as defined.
38. Retains instructional day requirements, but allows through a combination of in-person and distance learning instruction, allows minimum-day instructional minute requirements, and exempts LEAs from minimum instructional minute requirements for physical education.
39. Defines instructional minutes for in-person instruction as time under the immediate supervision of a certificated employee of the LEA and for distance learning based on the time value of assignments as determined and certified by a certificated employee of the LEA, or a combination of both instruction types.
40. Defines distance learning requirements: Distance learning may be provided on a LEA-wide or schoolwide basis pursuant to an order or guidance from a state or local public health officer, and for pupils who are medically fragile, at-risk from in-person instruction, or quarantining due to exposure to COVID-19. Instructional requirements are defined specific to the access and content of instruction, supports for students with exceptional needs, English learner students, students in foster care, experiencing homelessness or in need of mental health supports. Daily interaction with students in distance learning is defined, and LEAs are required to provide access to nutrition programs.
41. Defines in-person and distance learning participation for purposes of attendance: an LEA must document daily student participation, as defined, when providing distance learning, and keep weekly engagement records. LEAs shall continue to report absences, as defined, for purposes of reporting chronic absenteeism. LEAs shall developed tiered re-engagement strategies for students who do not participate, and shall regularly engage with parents or guardians regarding academic progress. Requirements shall be included in the audit guide.
42. Defines fiscal penalties for LEAs that do not meet the instructional day requirements or the attendance related requirements.
43. Continues 2019-20 policy that Charter schools offering distance learning pursuant to this section of the bill are not required to request a material revision to the charter, and will not be considered a non-classroom based charter.
44. Replaces the annual LCAP requirement with a Learning Continuity and Attendance Plan, with public stakeholder engagement, to outline the LEA's compliance with the Act's provisions including student participation and attendance reporting, device accessibility, and instruction. Requires the CDE and SBE to create a template for this Plan by August 1, 2020.
45. Prohibits layoffs for specified certificated and classified employees in the 2020-21 school year for all LEAs and community colleges, including teachers, and nutrition, transportation, and custodial staff. Provides legislative intent that no classified employees be laid off in the 2020-21 school year.
46. Clarifies statute for implementation of AB 1505 and AB 1507 (O'Donnell, 2019), regarding charter school pupil enrollment, geographic restrictions (including federal tribal lands), charter authorizers, charter Economic Recovery Targets, charter apportionment calculations, debts and liabilities, SBE waiver authority, and various other technical adjustments.
47. Amends annual child care growth adjustment to prevent negative growth.
48. Allows LEA inter-fund borrowing in 2020-21 and 2021-22, contingent on a public hearing.
49. Extends the teacher credential exam validity period to 11 years, and the credential fee validity period to 120 days, and reduces clinical practice requirement to one school setting in 2020-21.
50. Exempts FCMAT from the County Office of Education (COE) merit system for hiring.
51. Clarifies the COE Special Day Class instructional time penalty.
52. Allows charter renewal decisions to consider two out to the prior three years of academic performance, due to loss of 2019-20 accountability data.
53. Extends the deadline for Transitional Kindergarten credential requirements from August 2020 to August 2021.
54. Waives assessment requirement for the State Seal of Biliteracy in 19-20 and 20-21 school years.
55. Makes revisions to the Local Control Accountability Plan (LCAP) requirements including adding a summary of stakeholder engagement, requiring LCAP goals and differential assistance for addressing low-performing pupil subgroups, and requiring SBE LCAP instructions to specify that LEAs must address disparity when individual schools are in the lowest two perform each levels but the LEA overall is not.
56. Provides technical clean-up regarding the Collaborative for Education Excellence.
57. Extends the project performance period for the Bilingual Teacher Professional Development grant to June 30, 2021.
58. Suspends in-person parent advisory statutory requirements for Migrant Education program in 2020.
59. Allows distance learning for various Migrant Education programs in 2020.
60. Requires Individualized Education Programs to include plans for emergency conditions, when created or updated.
61. Suspends the creation of single-LEA SELPAs through July 1, 2024.
62. Extends CDE and LEA Special Education planning timelines.
63. Extends the LEA MediCal study deadlines.
64. Allows SELPA state funding for education-related mental health services to provide mental health services to all pupils.
65. Adopts the Special Education Funding Formula, which freezes existing special education funding calculations for apportionment except low-incidence pool, adopts an equalization adjustment for Special Education Local Plan Area base funding, at $625 per ADA, or the SELPA's 2019-20 ADA rate, whichever is greater.
66. Extends out-of-home funding calculations into 2020-21.
67. Adjusts the Mandate Block Grant for removal of Academic Performance Index and addition of AB 1505 clarifications.
68. Adopts clarifications to County excess ERAF calculations, makes calculations prior to 2019 final under certain parameters, requires new penalties beginning in 2019-20, and requires the State Controller to provide guidance.
69. Adds the Newcomer Education and Well-being Program, CalNEW, at the Department of Social Services, to the Education Code.
70. Reduces Adults in Correctional Facilities funding by $9.765 million.
71. Reduces LEA-based California State Preschool (CSPP) program funding by $110 million.
72. Eliminates the 2019-20 Budget Act expansion of non-LEA based CSPP's 10,000 slots, for a savings of $31 million.
73. Clarifies SB 117 (2020) ADA Hold Harmless provisions, ASES hold harmless provisions, and expands allowable uses of funding during COVID-19 closures to include provision of school meals and distance learning materials.
74. Allows distance learning for Extended Summer Special Education programs, if consistent with student IEP and time value of work is equivalent to minimum day requirements.
75. Provides CDE with limited waiver authority for ASES program hours, rates, ratios, and days for the 2020-21 school year.
76. Provides for a Guerneville Elementary settle-up payment plan.
77. Provides Education Protection Account 2019-20 over-payment settle-up.
78. Specifies that state pension payments on behalf of LEAs in 2020-21 are not considered LEA General Fund for Routine Restricted Maintenance Account requirements purposes, under Education Code 17070.75.
79. Extends Orange COE reporting deadlines to June 30, 2021 for the state's Multi-Tiered System of Support framework.
80. Extends the testing window for English Language Proficiency Assessments to October 30, 2020.
81. Provides LCAP dashboard data and differentiated assistance freeze for 2019-2020, due to COVID-19 school closures.
82. Allows new charters to delay opening in 2020-21.
83. Allows Adult in Correctional Facilities and Special Education for Children with Exceptional Needs appropriations from the 2018-19 Budget Act to be available for encumbrance through 2021.
84. Appropriates $1 million for SoCal Regional Occupational Center with reporting requirements.
85. Allocates $5.3 Billion in discretionary state and federal funds for one-time COVID closure impacts on schools and children, to address Learning Loss
    1. $1.5B to all LEAs, based on Special Education enrollment
    2. $2.9B to all LEAs, based on LCFF Supplemental and Concentration grant formula
    3. $979 million to all LEAs, based on LCFF grant formula.
86. Appropriates $50 million for new LEA-based Early Literacy initiatives, and $3 million for a CCEE early literacy system of support, pursuant to a lawsuit settlement.
87. Provides appropriation authority to Director of Finance to ensure adequate funding for the Special Education for Children with Exceptional Needs in 2020-21.
88. Appropriates $450,000 for California School Dashboard/LCAP/SARC online database and alignment development.
89. Appropriates $45 million from the federal Elementary and Secondary School Emergency Relief (ESSER) Fund to LEA Community School efforts during COVID-19, through 2025. Creates a competitive grant program with partnership and sustainability provisions.
90. Appropriates $112.2 million from the ESSER Fund for LEA school meal reimbursements during summer break and COVID school closures, at a rate of up to 75 cents per meal. Allows state reimbursement funds from 2019-20 to be used for disaster relief for LEAs who did or attempted to serve student meals during the school closure period.
91. Adopts a "Child Care Trigger" for anticipated increased but not yet appropriated federal CCDBG aid in the following priority order:
    1. Up to $100 million to fund additional child care access in the Alternative Payment Program in 2020-21, and up to $50 million to fund two-year contract expansions for General Child Care and non-LEA California State Preschool programs.
    2. Up to $25 million in grants to re-open licensed centers and family child care homes that have remained closed due to COVID-19 impacts.
    3. Up to $125 million for child care program stipends to address cost of care during COVID-19.
92. Appropriates funds for the FCMAT Standardized Account Code Structure system replacement project.
93. Provides $4 million Prop 98 General Fund for the California Dyslexia Initiative's research and dissemination of resources.
94. Appropriates $60 million through 2025 for the Classified Employees Summer Bridge program.
95. Appropriates $200,000 for the Young People's Taskforce, under the leadership of the State Superintendent, to address mental health and public safety culture on school campuses.

COMMENTS:

This is the Education Omnibus trailer bill for the 2020 budget. It implements all the appropriations and actions of the K-12 schools Proposition 98 Budget Package and early childhood education, including Local Control Funding Formula, deferrals for 2020-21 school year, federal aid, the "School Finance, Instruction and Accountability Act of 2020-21," and the transition of child development programs to the Department of Social Services.

According to the Author:

Each section of this legislation is necessary to implement the 2020-21 Budget Act appropriations and policy for the 2020-21 School Year, including federal aid to prevent budget cuts in local schools, to mitigate learning loss and child hunger during the COVID-19 crisis, provide support for re-opening schools safely, stabilize and expand essential worker child care, and provide one-time fiscal and academic flexibilities to assist schools in being responsive during the COVID-19 pandemic.

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

This bill appropriates approximately $103 Billion in state and federal funds for K-12 education and early childhood education, and additional federal aid as it becomes available. 

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 23, 2020

CONSULTANT: Erin Gabel / BUDGET / (916) 319-2099 FN: 0003144

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 24, 2020

Subject:

Summary:

This bill provides for statutory changes necessary to enact the K-12 statutory provisions of the Budget Act of 2020.

Background:

This bill, as part of the 2020-21 budget package, makes statutory changes to implement the 2020-21 Budget Act.

Proposed Law:

Specifically, this bill:

K-12 Education

1. Extends the deadline for the Department of Education to develop a standardized English language teacher observation protocol for use by teachers in evaluating a pupil’s English language proficiency from June 30, 2020 to December 31, 2021.
2. Amends various sections of Education Code to specify that amounts calculated for the Local Control Funding Formula and specified other calculations are considered final as of the certification of the second principal apportionment after five years.
3. Defers a total of $11 billion in principal apportionment payments to local educational agencies (LEAs) from the 2020-21 fiscal year to the 2021-22 fiscal year in the amounts of $1.5 billion from February to November of 2021, $2.4 billion from March to October of 2021, $2.4 billion from April to September of 2021, $2.4 billion from May to August of 2021, and $2.4 billion from June to July of 2021. This bill also defers $1.9 billion in principal apportionment payments to LEAs from June 2020 to July 2021. If, pursuant to Control Section 8.28 of the Budget Act of 2020, the Director of Finance determines that there are sufficient federal funds provided to the state for the 2020-21 fiscal year that may be used to offset the deferral amounts, the Director of Finance shall reduce the deferral amounts starting with the deferrals occurring earliest in the 2020-21 fiscal year.
4. Allows for up to $100 million in each of February, March, April, May, and June of 2020-21 of the warrants to be deferred in each of these months to instead be drawn in the month they were scheduled to be paid originally for LEAs that meet specified fiscal hardship exemption requirements.
5. Reverts $300 million in available unspent funds from the full-day kindergarten facilities grant program to the General Fund, make future allocations from the program contingent upon appropriation by the legislature, and make other technical amendments.
6. Allows school districts to deposit proceeds from the sale or lease of surplus property into the general fund of the school district for one-time general fund purposes with specified conditions through the 2023-24 fiscal year.
7. Eliminates the requirement for the approval by the State Board of Education for school district joint occupancy agreements.
8. Limits appeals to the State Board of Education regarding school district territory transfers by prohibiting appeals when a county committee on school district reorganization disapproves a territory transfer.
9. Extends deadlines for local education agencies to provide for an audit, and for the related oversight and reporting requirements.
10. Suspends the statutory split of Proposition 98 funding between K-12 education and California Community Colleges in the 2020-21 fiscal year.
11. Provides a new multi-year payment obligation designed to supplement funding provided by Proposition 98. This new obligation would designate 1.5 percent of General Fund Revenues per year to K-14 education beginning in 2021-22 to provide $12.4 billion over a multi-year period. This funding would accelerate the recovery of the Proposition 98 Guarantee from reductions due to the impact of COVID-19 and increase the Proposition 98 share of General Fund from 38 to 40 percent in a Test 1 year by 2023-24.
12. Extends the timeline for the Fiscal Crisis and Management Assistance Team to complete the required written status report for school districts who have received emergency loans from every six months, to an annual report. This bill makes technical amendments to the process by which school district budgets are reviewed and technical clean-up to update the activities of the Fiscal Crisis and Management Assistance Team in statute with actual practice. The bill also makes technical amendments to the process for audit exceptions for local educational agencies.
13. Exempts specified employees of the Fiscal Crisis Management and Assistance Team and the California School Information Services, from the merit system.
14. Amends provisions of AB 1505 (O’Donnell) Chapter 486, Statutes of 2019 and provisions of AB 1507 (Smith) Chapter 487, Statutes of 2019, relating to charter schools to specify how fiscal apportionments are made to charter schools that were required to make changes under those statutes. The bill also includes clarifying amendments to grandfather in existing charter schools operated by or located on tribal land from AB 1507 location requirements.
15. Allows school districts, for the 2020-21 and 2021-22 fiscal years if the state enacts deferrals of payments owed to school districts, to use inter-fund borrowing of up to 85 percent between funds for payment of obligations to help mitigate any necessary cash deferrals related to the economic impacts of the COVID-19 pandemic. Districts exercising this option would be required to hold a public hearing prior to considering a resolution authorizing the temporary transfer.
16. Specifies the following related to instruction, attendance, and calculation of apportionments in the 2020-21 fiscal year:
    1. A hold-harmless is provided for the purpose of calculating apportionment in the 2020-21 fiscal year; the Department of Education shall use the average daily attendance in the 2019-20 fiscal year reported from July 1, 2019 to February 29, 2020, as specified in the bill, except for new charter schools commencing instruction in 2020-21.
    2. LEAs shall offer in-person instruction to the greatest extent possible and may offer distance learning, as defined.
    3. LEAs are required to meet instructional day requirements through a combination of in-person and distance learning instruction, however, LEAs are allowed to only meet minimum-day instructional minute requirements and are exempted from minimum instructional minute requirements for physical education.
    4. Instructional minutes shall be determined for in-person instruction as time under the immediate physical supervision of a certificated employee of the LEA and for distance learning based on the time value of assignments as determined and certified by a certificated employee of the LEA, or a combination of both instruction types.
    5. LEAs that offer distance learning must comply with specified requirements. Distance learning may be provided on a LEA-wide or schoolwide basis pursuant to an order or guidance from a state or local public health officer, and for pupils who are medically fragile, at-risk from in-person instruction, or quarantining due to exposure to COVID-19. Instructional requirements are defined specific to the access and content of instruction, supports for students with exceptional needs, English learner students, students in foster care, experiencing homelessness or in need of mental health supports. Daily interaction with students in distance learning is defined, and LEAs are required to provide access to nutrition programs.
    6. For purposes of attendance, an LEA must document daily student participation, as defined, when providing distance learning, and keep weekly engagement records. LEAs shall continue to report absences, as defined, for purposes of reporting chronic absenteeism. LEAs shall developed tiered re-engagement strategies for students who do not participate, and shall regularly engage with parents or guardians regarding academic progress. Requirements shall be included in the audit guide.
    7. Fiscal penalties are defined for LEAs that do not meet the instructional day requirements or the attendance related requirements.
    8. Charter schools offering distance learning pursuant to this section of the bill are not required to request a material revision to the charter. Classroom based charter schools that offer distance learning pursuant to this section will not be considered a non-classroom based charter in the 2020-21 fiscal year if they provide distance learning.
17. Requires that, in place of the Local Control Accountability Plan previously required on December 15, 2020 pursuant to Executive Order N-56-20, an LEA is required to adopt a Learning Continuity and Attendance Plan (2020-21 LCAP) by September 30, 2020. The local control funding formula budget overview for parents shall be required to be adopted by December 15, 2020 with the first interim budget report. In adopting the 2020-21 LCAP pursuant to this section, the governing body of the LEA shall consult with stakeholders, as specified, including the parent advisory committee and the English learner parent advisory committee, solicit stakeholder input and hold two public hearing to present the 2020-21 LCAP and for the adoption of the 2020-21 LCAP. Schools districts shall submit the 2020-21 LCAP to the county superintendent of schools, county offices of education shall submit the 2020-21 LCAP to the Superintendent of Public Instruction, and charter schools shall submit the 2020-21 LCAP to their chartering authority within five days after adoption. The County Superintendent of Schools and the Superintendent of Public Instruction may review and comment on the 2020-21 LCAPs by October 30, 2020. The template for the 2020-21 LCAP shall be developed by the Superintendent of Public Instruction, in consultation with the executive director of the State Board of Education, by August 1, 2020, that includes, but is not limited to the following:
    1. A description of how the LEA will provide continuity of learning and address the impacts of COVID-19 on pupils, staff, and the community in the following areas and the specific expenditure the LEA anticipates taking to support its ability to address the impacts of COVID-19:
       1. Distance Learning
       2. Learning Loss
       3. Mental Health / Social Emotional Well-being of students and staff
       4. Professional Development
       5. Pupil Engagement and Outreach
       6. School Nutrition
    2. For each area, the 2020-21 LCAP shall describe how state and federal funds (including funds provided for the Learning Loss Block Grant) are anticipated to be used to support the efforts described in the 2020-21 LCAP. If the actions and expenditures described in the 2020-21 LCAP are not included in the LEA’s budget, the plan shall describe how they will be included in the first interim budget report.
    3. The 2020-21 LCAP shall also include a description of how the LEA is increasing or improving services in proportion to funds generated on the basis of the number and concentration of English learner, foster youth, and low income students pursuant to the Local Control Funding Formula, and in compliance with regulations adopted by the State Board of Education.
    4. The 2021-22 Annual Update to the Local Control and Accountability Plan shall include the actions and expenditures included in the 2020-21 LCAP.
18. Specifies the amount to be withheld from the Local Control Funding Formula entitlement for a county office of education that operates a special day class or classes and does not offer the required minimum number of instructional days or instructional minutes.
19. Extends by one year the deadline that requires transitional kindergarten teachers to obtain 24 units of early childhood education as part of their education requirements.
20. Provides the Superintendent of Public Instruction with the authority to determine alternative criteria for students to meet the State Seal of Biliteracy requirements due to COVID-19 constraints.
21. Amends requirements for the Student Performance and Stakeholder Engagement section of the Local Control and Accountability Plan template to be adopted by the State Board of Education by January 31, 2022
22. Makes technical edits to the operations of the California Collaborative for stakeholder engagement.
23. Extends by one year, the grant period for the Bilingual Teacher Professional Development Grant.
24. Provides for various flexibilities for the Migrant Education Program. Specifically the bill suspends requirements for 2020 parent advisory council nominations and elections until September 2020, decreases the required number of regional parent advisory council meetings in 2020 from six to three meetings, decreases the required number of State Parent Advisory Council meetings in 2020 from six to three meetings, suspends the requirement that the State Superintendent of Public Instruction sponsor a biennial State Parent Advisory Council Conference in 2020, allows summer school programs to be offered through distance learning for the 2020 calendar year, waives the instructional minute requirements for summer school instruction in 2020, but encourages local educational agencies to offer the minimum instructional minutes to the extent practicable for the 2020 calendar year.
25. Suspends the requirement that school districts, county offices of education, and community college districts make facilities available for Migrant Education Summer School programs in 2020 if facilities are closed due to the COVID-19 pandemic.
26. Provides a moratorium from establishing new single district Special Education Local Plan Areas (SELPAs) for the 2020-21 through the 2023-24 fiscal year.
27. Provides a two-year extension to the date by the Department of Education must develop and the date by which a SELPA must include, an annual assurances support plan in the local plan for education of all individuals with exceptional needs.
28. Provides for a one-year extension, to October 1, 2021, for when recommendations are provided from a workgroup related to improving the transitions of three-year olds to LEAs from regional centers, and improving access to and coordination of LEA Medi-CAL billing and other programs. The bill also requires the workgroup to provide a progress report by October 1, 2020, and extends the availability of funding for this purpose.
29. Creates a new special education funding formula, commencing with the 2020-21 fiscal year, that provides SELPAs with the greater of $625 per average daily attendance or the per ADA rate the SELPA received in 2019-20, and applies COLA in future years to the statewide base rate. COLA is not provided in the 2020-21 fiscal year. The bill repeals statutes related to the current Special Education funding program, freezes funding at the 2019-20 levels for most add-on adjustments, and makes various other related technical amendments.
30. Extends through the 2020-21 fiscal year the existing funding allocation method for the Out-of-Home Care program for foster students with exceptional needs.
31. Requires an Individualized Education Plan to include a description of how services will be provided to students in an emergency situation, in the development of a new IEP or at the next regularly scheduled review of an existing IEP.
32. Provides a backfill for special education programs for 2020-21 to the extent that property tax revenues from Redevelopment Agency dissolution are not sufficient to cover the appropriation in the 2020 Budget Acts for Special Education
33. Specifies that an LEA may claim apportionment for extended school year services for pupils with disabilities offered through distance learning in the summer of 2020 that meets specified requirements.
34. Expands the allowable use of Educationally-Related Mental Health Services funds to include mental health services for all students beginning in the 2020-21 fiscal year. Currently funds are restricted to education-related mental health services that are included in individualized education plans.
35. Extends the reporting date for Multi-tiered System of Support (SUMS Project) from June 2020 to June 30, 2021 because the project cannot collect the necessary data from participants due to COVID-19 school closures.
36. Prevents school districts, charter schools, and county offices of education from expending funds Proposition 98 funds for courses or instruction offered by private or public colleges or universities beyond what is required in pursuit of a high school diploma, except for courses or instruction in which students are enrolled in prior to July 1, 2020.
37. Removes the Academic Performance Index from the Mandate Block Grant, as it is no longer calculated.
38. Requires the State Controller’s Office, in consultation with the Department of Finance, to develop guidance by December 31, 2020 for the allocation of K-12 Educational Revenue Anticipation Fund (ERAF) by County Auditor Controllers commencing with calculations for the 2019-20 fiscal year.
39. Establishes the California Newcomer Education and Well-Being (CalNEW) program to be administered by the Department of Social Services to funding to school districts to support refugee children, unaccompanied minors, and English learner students.
40. Includes amendments to reduce Item 6100-158-0001 of the Budget Act of 2019 (Chapter 23, 55, 80, and 363 of the Statutes of 2019) by $9,765,000 Proposition 98 General Fund to reflect savings related to the unexpended balance of the Adults in Correctional Facilities Program.
41. Clarifies the provisions of Executive Order N-26-2020 and Senate Bill 117, (Committee on Budget and Fiscal Review) Chapter 3, Statutes of 2020 on July 1, 2020 and makes other technical amendments.
42. Includes legislative intent language to evaluate the use of police officers and other law enforcement on school campus, consider other alternatives to ensure student safety, and consider encouraging LEAs to use school resources currently allocated to law enforcement for other student support services.
43. Prevent school districts from terminating certificated employees from July 1 2020 to July 1, 2021, with the exception of those employees in positions that require administrative or supervisory credentials.
44. Prevents the governing boards of school districts, community college districts, county offices of education, or joint powers authorities from terminating classified employees for lack of funds or lack of work if they hold classifications or are in positions in nutrition, transportation, or custodial services from July 1 2020 to July 1, 2021. Includes legislative intent language that school districts, community college districts, joint powers authorities, and county offices of education retain all classified employees in the 2020-21 fiscal year.
45. Allows the Superintendent of Public Instruction to waive various requirements of the Afterschool Education and Safety program as needed to provide flexibility for the 2020-21 school year and to prorate funding rates for programs offering more than three hours a day and up to six hours a day.
46. Specifies the process for the state to recoup an overpayment of funds provided to the Guerneville Elementary School District through a multi-year repayment plan.
47. Requires the State Controller’s Office to recapture Local Control Funding Formula state aid overpayments from the second principal apportionment to LEAs for deposit into the Educational Protection Account and provide the fourth quarter Educational Protection Account payment still owed to LEAs by August 15, 2020.
48. Waives the requirement that the Fiscal Crisis and Management Assistance Team complete a comprehensive review of Inglewood Unified School District in 2019-20 due to COVID-19 constraints.
49. Extends the testing window for the English Language Proficiency Assessment for California (ELPAC) into the fall of 2020 to be used for the reclassification of pupils from English learner to English proficient.
50. Specifies that the State Board of Education shall not publish the California School Dashboard (Dashboard) in December 2020, specifies that valid and reliable data shall be published on the DataQuest website or through other means and specifies that LEAs identified for technical assistance or intervention pursuant to the 2019 Dashboard remain identified until the release of the 2021 Dashboard.
51. Allows a charter school that is scheduled to open or add a grade level for the 2020-21 school year to delay opening or adding a grade for one year without submitting a material revision to its chartering authorizer.
52. Appropriates $60 million in one-time Proposition 98 General Fund for the Classified Employee Summer Assistance Program for the 2021-22 program cohort. Specifies that the remaining balance funds made available in the 2018 Budget Act for the Classified School Employee Assistance program, shall be available for purposes increasing rates for the 2020-21 cohort of program participants, as included in the April 30, 2020 notification by the Department of Education.
53. Appropriates $1 million in one-time Proposition 98 General Fund for the Southern California Regional Occupational Center for instructional and operational costs.
54. Appropriates a total of $5.3 billion in one-time funding ($4.4 billion federal Coronavirus Relief Fund, $355.2 million federal Governor’s Emergency Education Relief Fund and $540 million Proposition 98 General Fund) to address learning loss and other impacts of COVID-19. Of this total, $1.5 billion is allocated to LEAs, with the exception of non-classroom based charter schools, on the basis of the enrollment of students with exceptional needs (ages 3-22), $2.9 billion is allocated to LEAs, with the exception of non-classroom based charter schools, on the basis of the proportion of Supplemental and Concentration grant funding each LEA receives of the total statewide Supplemental and Concentration grant funding, and $980 million is provided to all LEAs in proportion to the amount of Local Control Funding Formula funding each LEA receives. Federal funds must be expended within specified federal time frames and funding must be used to directly support pupil academic achievement and mitigate learning loss related to COVID-19 school closures, including academic programs, services, and supports to address learning loss, extended instructional minutes and services, additional materials, including devices or internet connectivity, and other supports related to health, mental health, professional development, and school meals among others.
55. Appropriates $50 million in one-time Proposition 98 funding to the Department of Education for the Early Literacy Support Block Grant to provide grants (over a three-year period) to LEAs with the 75 schools with the highest percentage of pupils in grade three scoring at the lowest standard achievement level on the English Language Arts assessment. LEAs receiving grants shall conduct a root-cause analysis, create a literacy action plan, and provide for supplementary activities for children in grades Kindergarten through three. The Department of Education may retain $3 million of the total for the costs of administering the program.
56. Appropriates $3 million in one-time Proposition 98 funding to establish an expert lead in literacy within the statewide system of support.
57. Appropriate $450,000 in one-time Proposition 98 funding to support the alignment and integration of the online platforms for the California School Dashboard, the Local Control and Accountability Plan electronic template system, and the School Accountability Report Card.
58. Appropriates $45 million in one-time Federal Elementary and Secondary Schools Emergency Relief Funds for a California Community Schools Partnership Program. Grants for this program are to be awarded on a competitive basis to LEAs, including county offices of education to support and expand existing community schools. Funds are available over a four year period.
59. Appropriates $112.2 million in one-time Federal Elementary and Secondary Schools Emergency Relief Funds for LEA school meal reimbursements during summer break and COVID school closures, at a rate of up to 75 cents per meal. Allows state reimbursement funds from 2019-20 to be used for disaster relief for LEAs who did or attempted to serve student meals during the school closure period.
60. Appropriates $4.2 million in one-time Proposition 98 General Fund for the Standardized Account Code Structure System replacement project.
61. Appropriates $750,000 in one-time Proposition 98 General Fund for the development of draft distance learning curriculum and instructional guidance in English language arts and mathematics to be developed by the Sacramento County Office of Education, to be adopted by the State Board of Education by May 31, 2021.
62. Appropriates $4 million in one-time Proposition 98 General Fund create the California Dyslexia Initiative to be allocated to a county office of education to increase statewide resources for early interventions, and supports for addressing specific learning disabilities, such as dyslexia.
63. Includes amendments to grant local educational agencies the authority to exclude the consideration of all state pension payments on behalf of local educational agencies rom general fund expenditures for the purposes of the Routine Restricted Maintenance Account calculation.
64. Appropriates $200,000 in one-time General Fund to the Department of Education for a Young People’s Task Force that will develop guidance to promote culturally competent interactions between young people and school resource officers on school campuses, contingent upon future legislation in the 2019-20 Regular Session.

Early Education and Development

1. Adds the Early Childhood Development Act to transfer all child care programs, with the exception of the California State Preschool Program from the Department of Education to the Department of Social Services, commencing July 1, 2021. Establishes the position of Deputy Director of Child Development within the Department of Social Services, to be appointed by the Governor and confirmed by the Senate. The Department of Social Services, in consultation with the Department of Education is required to provide a report detailing the transition and planning efforts by March 31, 2021 and quarterly updates from October 1, 2020 to December 31, 2024.
2. Amends the growth adjustment for child care programs, including state preschool, based on population growth of children ages zero to four, to be applied only when the adjustment is greater than zero.
3. Provides a hold harmless for child care providers operating contracts with the Department of Education (California State Preschool Programs, General Child Care Programs, Family Childcare Home Education Networks, Migrant Child Care and Development Programs, and Programs for children with Special Needs) for the 2020-21 fiscal year. Specifically, for those providers who remain open or re-open within a specified time frame, or are closed by a local or state public health order, reimbursement shall be at 100 percent of the maximum contract amount or 100 percent of enrollment, whichever is greater. The bill further requires child care programs that remain closed due to a health order to provide distance learning services.
4. Specifies that commencing July 1, 2020, alternative payment programs shall provide notice, including the effective date, of any changes to rates, care schedules, fees, or terminations to childcare providers on the same day a notice of action is issued to a family.
5. Requires alternative payment agencies to provide specified data about childcare caseload in the alternative payment program to the Department of Education on a monthly basis.
6. Specifies that unspent General Funds provided for the Early Learning and Care Infrastructure Grant Program and the Early Learning and Care Workforce Development Grants Program shall revert to the General Fund on June 30, 2020.
7. Eliminates 10,000 full-day non-LEA state preschool slots provided in the 2019 Budget Act and reverts $31.4 million to the General Fund. The bill also decreases funding for the LEA State Preschool Program in the 2019 Budget Act by $110.4 million Proposition 98 General Fund to reflect savings related to the unexpended program balance.
8. Allocates $152.3 million Federal Trust Fund Child Care and Development Block Grant Supplemental Fund in fiscal year 2019-20 for transfer to the General Fund to offset $152.3 million in costs associated with the states response to mitigating the COVID-19 impact on child care programs. The state costs incurred provided assistance and relief to child care providers and families in 2019-20 in immediate response to the COVID-19 pandemic as follows: $50 million allocated for child care services provided to workers deemed essential during the response to COVID-19 and at-risk children and $50 million to child care providers for the purposes of cleaning, sanitation, and other activities necessary to maintain or resume the operation of programs pursuant to SB 89 (Committee on Budget and Fiscal Review) Chapter 2, Statutes of 2020, and $44.3 million (including $3.3million for CalWORKS Stage 1 family fee suspension) for continued payments and assistance to child care providers and families as a result of decreased enrollment or closures related to COVID-19, and $8 million to be provided for a 30-day extension of the family fee waiver for child care programs, consistent with Executive Order N-66-20.
9. Appropriates $198 million Federal Trust Fund Child Care and Development Block Grant Supplemental Fund for the following:
   1. $62.5 million to support alternative payment programs to reimburse providers at families’ certified need, regardless of attendance, until June 30, 2021, or until funds are exhausted.
   2. $62.5 million in flat rate, per child stipends for alternative payment programs based on the number of subsidized children enrolled and the average cost of care.
   3. $73 million to extend child care for children of essential workers and at-risk children who received care with the $50 million provided for care under SB 89 (Committee on Budget and Fiscal Review) Chapter 2, Statutes of 2020, for at least 90 days. Further extends any unspent funds from the $50 million provided for care under SB 89 (Committee on Budget and Fiscal Review) Chapter 2, Statutes of 2020 for the same purpose of extending care for families. Prioritizes these children for permanent enrollment in available capacity within the alternative payment program if they meet program requirements.
10. Specifies that if additional federal funds are received for these purposes in the 2020- 21 fiscal year, the Department of Education shall prioritize funds as follows:
    1. Up to $100 million for alternative payment providers to extend access to child care for children of essential workers, at risk children, and other eligible children as specified, in order of priority.
    2. Up to $50 million to increase capacity for up to two years for general child care programs and state preschool programs.
    3. Up to $25 million in stipends to assist child care providers with the costs of re-opening.
    4. Up to $125 million in stipends to assist all subsidized child care providers.

Commission on Teacher Credentialing

1. Extends for one year the time of validity of exam scores used to satisfy a requirement for the issuance of a teaching credential, certificate, permit, or waiver for scores between March 19, 2020 and June 30, 2021.
2. Extends to 120 days the time of validity of fees submitted to the Commission on Teacher Credentialing with paper applications for teaching credentials not available for online renewal or recommendation.
3. Reduces the requirement for the field practice assignment for a pupil services credential to take place in only one school setting from March 19, 2020 to June 30, 2021, instead of two or more school settings.
4. This bill makes various other technical changes.

Fiscal Effect:

The funding related to the changes in this bill is contained in the 2020-21 Budget Act. In addition, this bill appropriates funding for K-14 education programs, totaling approximately $5.8 billion.

Support:

None on File

Opposed:

None on File

-- END --

 THIRD READING  

Bill No: AB 77

Author: Committee on Budget

Amended: 6/11/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 15-2, 6/12/19

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

NOES: Jones, Stone

NO VOTE RECORDED: Morrell

ASSEMBLY FLOOR: Not relevant

SUBJECT: Higher education trailer bill

SOURCE: Author

DIGEST:

This bill makes necessary changes to implement the higher education provisions adopted as a part of the Budget Act of 2019.

ANALYSIS: This bill makes statutory changes to implement the higher education provisions of the 2019-20 Budget. Specifically, this bill:

1. Cal Grants for Students with Dependent Children. Creates a new Cal Grant access award of $4,000 or $6,000 for California Community College (CCC), University of California (UC) and California State University (CSU) students with dependent children, as specified.
2. Cal Grants for Students at Accredited Private Non-Profit Institutions. Extends the timeframe by one-year to 2019-20 for accredited private non-profit institutions to meet associate degree for transfer admission thresholds to maintain the maximum Cal Grant award of $9,084.
3. Competitive Cal Grant Awards. Increases the number of competitive Cal Grant Awards from 25,750 to 41,000. This bill also repeals existing law that excludes students that qualify for the exemption from nonresident tuition from receiving a competitive Cal Grant. The bill adds legislative intent language for all forms of state-based aid in California to be made equally available to students eligible for state-based financial aid.
4. Middle Class Scholarship. Adjusts the appropriation for the program to reflect updated caseload and eligibility for the program. The appropriations for the 2017-18, 2018-19, 2019-20, and 2020-21 fiscal years adjusts to $100 million, 2018-19 $107 million, $110.3 million, and to $117 million, respectively.
5. California College Promise Program. Authorizes colleges meeting specified requirements to use $43 million Proposition 98 General Fund to waive fees for first-time, full-time community college students for two academic years.
6. Cal Grant B Incentive Program. Establishes the Cal Grant B Service Incentive Grant Program, under the administration of the California Student Aid Commission (CSAC), for students that qualify for the exemption from nonresident tuition established by AB 540. Students will receive a stipend of up to $1,500 per semester or $1,000 per quarter if they perform at least 100 hours of community or volunteer service per quarter or 150 hours of community or volunteer service per semester.
7. Federal Vocational Rehabilitation and Employment Program. Specifies that a student at CSU or CCC who is receiving benefits under the federal Vocational Rehabilitation and Employment program is exempt from nonresident tuition.
8. UC Institutional Financial Aid. Allows the UC to use institutional funds to provide scholarships for California students who meet the UC’s definition of a California resident.
9. Legislative Analyst’s Office Reports. Amends the deadline for the final evaluation of the community college baccalaureate degree pilot program from July 1, 2021 to February 1, 2020, and eliminates the September 30, 2019 report for the Seymour-Campbell Student Success Act.
10. CSU Capital Outlay. Authorizes remaining bond funds from 1996, 2002, 2004, and 2006 to be appropriated to the CSU Los Angeles Physical Sciences Building Renovation project.
11. California State University Post-Employment Benefits. Amends the health and dental benefit vesting schedule for specified new CSU employees to 10 years. This bill also authorizes the California Public Employees Retirement System to provide retiree contact information to CSU for the purpose of notifying them of retirement benefits.
12. California Kids Investment and Development Savings (KIDS) Program. Establishes the California KIDS Program to be administered by the Scholarshare Investment Board of the State Treasurer’s Office. This program will provide state funding to open college savings accounts for eligible low-income California child born on or after July 1, 2020, and encourages parents to match the state’s contribution.
13. Child Savings Account Grant Program. Establishes the Child Savings Account Grant program, to be administered by the CSAC. This program will provide grants to support local governments and nonprofit organizations that sponsor or create local child savings account programs. Applicants who have a higher percentage of students in the local programs geographic region who are eligible for free or reduced price lunch, lower median family income, or lower college-going rates shall receive priority.
14. Field Act Exemption. Provides an exemption from the Field Act for buildings operated by a nonprofit foundation on federal land.
15. CSU Center to Close Achievement Gaps. Creates the Center to Close Achievement Gaps at CSU. The Center will provide resources, such as a clearinghouse on evidenced-based best practices, professional preparation of educators, and assistance to local education agencies to eliminate academic achievement gaps between subgroups of students. The Center’s mission is to eliminate academic achievement gaps between subgroups of pupils enrolled in kindergarten and grades 1 to 12.
16. UC Reporting. Amends statute requiring UC to report to the Legislature annually on system wide initiatives and their costs, to ensure that all programs and initiatives are included in the report.
17. UC and CSU Collaborative for Neurodiversity and Learning. Establishes the UC and CSU Collaborative for Neurodiversity and Learning, comprised of UC Los Angeles, CSU Dominguez Hills, and other CSU campuses along the Los Angeles basin. The collaborative shall develop a network of brain researchers and educators to develop educational support and new teaching methods for children with diverse learning needs, including children with dyslexia and other learning differences.
18. California State Law Library Special Account. Extends the sunset date of the California State Law Library Special Account until 2025.
19. Higher Education and CalFresh. Directs the Department of Social Services, in consultation with the UC, CSU and CCC, to assess the effectiveness of the federal CalFresh program in serving low-income college students and provide recommendations by November 1, 2019, to the Department of Finance and Legislature to improve college student access to the program.
20. CCC Re-entry Grants. Directs the California Community College Chancellor’s Office (CCCCO) to administer a grant program serving currently incarcerated and formerly incarcerated students. Colleges may apply for grants to support these students by offering services such as academic counseling, financial aid information and career counseling.
21. CCC Student Basic Needs Reporting. Requires CCCCO to report by March 1, 2020, on the use of funds provided in the Budget to address student basic needs, including housing and food insecurity.
22. Community College Student Centered Funding Formula. Makes several changes to the Student Centered Funding Formula, including capping outcomes funding to 10 percent of the overall formula, limiting colleges to points for the highest degree a student earns in a year, setting a three-year average for outcomes, altering the definition of a transfer student and extending the hold harmless period for an additional year.  
23. Various Adjustments. Makes other various technical adjustments related to reappropriations and technical assistance.

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

SUPPORT: (Verified 6/11/19)

None received

OPPOSITION: (Verified 6/11/19)

None received

Prepared by: Anita Lee / B. & F.R. / 916-651-4103

6/14/19 11:22:59

**** END ****

ASSEMBLY THIRD READING

ATR Bill Id:AB 77

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: 0000120

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 12, 2019

Subject: Higher education trailer bill

Summary:

This bill makes necessary changes to implement the higher education provisions adopted as a part of the Budget Act of 2019.

Proposed Law:

This bill makes various statutory changes to implement the higher education provisions of the 2019-20 budget. Specifically, this bill:

1. Cal Grants for Students with Dependent Children. Creates a new Cal Grant access award of $4,000 or $6,000 for California Community College (CCC), University of California (UC) and California State University (CSU) students with dependent children, as specified.
2. Cal Grants for Students at Accredited Private Non-Profit Institutions. Extends the timeframe by one-year to 2019-20 for accredited private non-profit institutions to meet associate degree for transfer (ADT) admission thresholds to maintain the maximum Cal Grant award of $9,084.
3. Competitive Cal Grant Awards. Increases the number of competitive Cal Grant Awards from 25,750 to 41,000. This bill also repeals existing law that excludes students that qualify for the exemption from nonresident tuition from receiving a competitive Cal Grant. The bill adds legislative intent language for all forms of state-based aid in California to be made equally available to students eligible for state-based financial aid.
4. Middle Class Scholarship. Adjusts the appropriation for the program to reflect updated caseload and eligibility for the program. The appropriations for the 2017-18, 2018-19, 2019-20, and 2020-21 fiscal years adjusts to $100 million, 2018-19 $107 million, $110.3 million, and to $117 million, respectively.
5. California College Promise Program. Authorizes colleges meeting specified requirements to use $43 million Proposition 98 General Fund to waive fees for first-time, full-time community college students for two academic years.
6. Cal Grant B Incentive Program. Establishes the Cal Grant B Service Incentive Grant Program, under the administration of the California Student Aid Commission (CSAC), for students that qualify for the exemption from nonresident tuition established by AB 540. Students will receive a stipend of up to $1,500 per semester or $1,000 per quarter if they perform at least 100 hours of community or volunteer service per quarter or 150 hours of community or volunteer service per semester.
7. Federal Vocational Rehabilitation and Employment program. Specifies that a student at CSU or CCC who is receiving benefits under the federal Vocational Rehabilitation and Employment program is exempt from nonresident tuition.
8. UC Institutional Financial Aid. Allows the UC to use institutional funds to provide scholarships for California students who meet the UC’s definition of a California resident.
9. Legislative Analyst’s Office Reports. Amends the deadline for the final evaluation of the community college baccalaureate degree pilot program from July 1, 2021 to February 1, 2020, and eliminates the September 30, 2019 report for the Seymour-Campbell Student Success Act.
10. CSU Capital Outlay. Authorizes remaining bond funds from 1996, 2002, 2004, and 2006 to be appropriated to the CSU Los Angeles Physical Sciences Building Renovation project.
11. California State University Post-Employment Benefits. Amends the health and dental benefit vesting schedule for specified new CSU employees to ten years. The bill also authorizes the California Public Employees Retirement System to provide retiree contact information to CSU for the purpose of notifying them of retirement benefits.
12. California Kids Investment and Development Savings (KIDS) Program. Establishes the California KIDS Program to be administered by the Scholarshare Investment Board of the State Treasurer’s Office. This program will provide state funding to open college savings accounts for eligible low-income California child born on or after July 1, 2020, and encourages parents to match the state’s contribution.
13. Child Savings Account Grant Program. Establishes the Child Savings Account Grant program, to be administered by the CSAC. This program will provide grants to support local governments and nonprofit organizations that sponsor or create local child savings account programs. Applicants who have a higher percentage of students in the local programs geographic region who are eligible for free or reduced price lunch, lower median family income, or lower college-going rates shall receive priority.
14. Field Act Exemption. Provides an exemption from the Field Act for buildings operated by a nonprofit foundation on federal land.
15. CSU Center to Close Achievement Gaps. Creates the Center to Close Achievement Gaps at California State University. The Center will provide resources, such as a clearinghouse on evidenced-based best practices, professional preparation of educators, and assistance to local education agencies to eliminate academic achievement gaps between subgroups of students. The Center’s mission is to eliminate academic achievement gaps between subgroups of pupils enrolled in kindergarten and grades 1 to 12.
16. UC Reporting. Amends statute requiring UC to report to the Legislature annually on system wide initiatives and their costs, to ensure that all programs and initiatives are included in the report.
17. UC and CSU Collaborative for Neurodiversity and Learning. Establishes the UC and CSU Collaborative for Neurodiversity and Learning, comprised of UC Los Angeles, CSU Dominguez Hills, and other CSU campuses along the Los Angeles basin. The collaborative shall develop a network of brain researchers and educators to develop educational support and new teaching methods for children with diverse learning needs, including children with dyslexia and other learning differences.
18. California State Law Library Special Account. Extends the sunset date of the California State Law Library Special Account until 2025.
19. Higher Education and CalFresh. Directs the Department of Social Services, in consultation with the UC, CSU and CCC, to assess the effectiveness of the federal CalFresh program in serving low-income college students and provide recommendations by November 1, 2019 to the Department of Finance and Legislature to improve college student access to the program.
20. CCC Re-entry Grants. Directs the California Community College Chancellor’s Office (CCCCO) to administer a grant program serving currently incarcerated and formerly incarcerated students. Colleges may apply for grants to support these students by offering services such as academic counseling, financial aid information and career counseling.
21. CCC Student Basic Needs Reporting. Requires CCCCO to report by March 1, 2020 on the use of funds provided in the budget to address student basic needs, including housing and food insecurity.
22. Community College Student Centered Funding Formula. Makes several changes to the Student Centered Funding Formula, including capping outcomes funding to 10 percent of the overall formula, limiting colleges to points for the highest degree a student earns in a year, setting a three-year average for outcomes, altering the definition of a transfer student and extending the hold harmless period for an additional year.  
23. Various Adjustments. Makes other various technical adjustments related to reappropriations and technical assistance.

Support: None on file.

Opposed: None on file.

-- END --