02.17.09: State Budget Update
By David Walrath
Assembly Bill 4 of the Third Extraordinary Session is part of the budget compromise that is waiting for one more State Senate yes vote. The following are the provisions of the bill:
Deficit Factors
|
|
2008-09 |
2009-10 |
|
Counties |
7.839% |
13.360% |
|
Districts |
7.844% |
13.094% |
Settle up
Uses $1.1 billion in settle up funds for 2008-09 school funding.
This is not a cut in funding, but is one-time funding that must be replaced in 2009-10.
Revenue Limit Equalization Funding Methodology
Authorizes a methodology for the apportionment of $200 million in K-12 revenue
limit equalization funding in 2011-12, which will be paid only if the voters approve
a state constitutional amendment that provides approximately $9.3 billion in
supplemental education payments to K-12 schools and community colleges
over several years, beginning in 2011-12.
Deferral
Defers $2.6 billion in February 2009 principal apportionment to July 2009
and makes the same deferral for all future years.
Deferral is $1.0 billion in K-12 apportionments from July to October
2009 AND $1.5 billion from August to October.
Extension Authority for Budget Year Payment Deferrals
Extends the encumbrance of funds by one month for categorical program
payments deferred from June to July 2010.
Flexibility
Routine Maintenance Reserves
Reduces the amount that school districts are required to set aside in
"routine restricted maintenance accounts" from three to one percent
of their general fund budgets. This requirement would be in effect for
five years, beginning in 2008-09.
Deferred Maintenance
Eliminates the requirement that school districts that fail to set at least
a half percent of their current-year revenue limit average daily attendance
funding for maintenance of facilities must submit a related report to the
Legislature. This requirement would be in effect for five years, beginning
in 2008-09.
Funding for Emergency Repair Program
Suspends any transfer of funds from the Proposition 98 Reversion Account
into the School Facilities Emergency Repair Account for the 2009-10 fiscal year.
Limits funding for the Emergency Repair Program to no more than $101 million
in 2008-09.
Prohibits school districts from using School Facilities Emergency Repair Account
funds to supplant state funds provided for deferred maintenance, and from
depositing these funds into district deferred maintenance accounts.
Class Size Reduction Penalties
For four years, beginning in the 2008-09, reduces the penalties for exceeding the maximum
class sizes allowable under the class size reduction incentive program.
SEC. 17. Section 52124.3 is added to the Education Code, to read:
52124.3. (a) For the 2008-09, 2009-10,
2010-11, and 2011-12 fiscal years only, the
amounts deducted pursuant to subdivision (d)
of Section 52124 shall be as follows:
(1) Five percent of the amount to which
the school district would otherwise be eligible
for each class for which the annual enrollment
determined pursuant to Section 52124.5 is
greater than or equal to 20.5 but less
than 21.5.
(2) Ten percent of the amount to which
the school district would otherwise be
eligible for each class for which the
annual average enrollment determined pursuant
to Section 52124.5 is greater than or equal
to 21.5 but less than 22.5.
(3) Fifteen percent of the amount to which
the school district would otherwise be eligible
for each class for which the annual average
enrollment determined pursuant to Section
52124.5 is greater than or equal to 22.5 but
less than 23.0.
(4) Twenty percent of the amount to which
the school district would otherwise be eligible
for each class for which the annual average
enrollment determined pursuant to Section
52124.5 is greater than or equal to 23.0 but
less than 25.0.
(5) Thirty percent of the amount to which
the school district would otherwise be eligible
for each class for which the annual average
enrollment determined pursuant to Section 52124.5
is greater than or equal to 25.0.
(b) A local educational agency is eligible to
receive funding pursuant to this section only
if it was participating in the K-3 Class Size
Reduction Program as of December 10, 2008.
An eligible local educational agency may only
receive funding for the grade level or levels
for which it had applied to receive
funding as of December 10, 2008.
One-Time Only: Ending Fund Balances for Restricted K-12 Programs
For the current and budget years, authorizes LEAs to use ending fund balances
as of June 30, 2008, in most restricted, categorical program accounts, to backfill
program reductions. Districts would not be able to access ending balances for
Economic Impact Aid, Targeted Instructional Improvement Grants, Instructional Materials,
Special Education, Quality Education Investment Act, CAHSEE (California High School
Exit Exam) Supplemental Instruction, and Home-to-School Transportation.
Requires LEAs who elect to use this authority to submit a related report to the
Superintendent of Public Instruction (SPI), and requires the SPI to compile
those reports and submit the information to the Legislature by October 31, 2009.
Ongoing Flexibility for Ongoing Categorical Program Funds
(Program listings from Strategic Education Services)
Programs with no cuts and excluded from transfers to the General Fund:
- Advancement Via Individual Determination (AVID)
- After School Programs
- Child Development
- Child Nutrition
- Economic Impact Aid
- Home-to-School Transportation
- K-3 Class Size Reduction
- QEIA
- Special Education
Categorical programs with 2008-09 cuts (estimated to be 15% in 2008-09 and an
additional 5% in 2009-10) but no transfer to the district general fund:
- Adults in Correctional Facilities
- Agricultural Vocational Education
- Apprentice Program
- Charter School Facility Grant Program
- English Learner Student Assistance
- Foster Youth Programs
- K-12 Internet Access
- Partnership Academies
- Student Assessment Testing
- Year Round Schools
Programs that are cut in 2008-09 (estimated to be 15% in 2008-09 and an
additional 5% in 2009-10) with transfer authority to the district general fund
for any educational purpose:
- Adult Education
- Advanced Placement Programs
- American Indian Early Childhood Education Centers
- American Indian Education Centers
- Arts and Music Block Grant
- Bilingual Teacher Training
- CA Association of Student Councils
- CA High School Exit Exam-Instructional Support and Services
- CA School Age Families Education
- Certificated Staff Mentoring
- Charter School Categorical Block Grant
- Chief Business Officers Training Program
- Child Oral Health Assessments
- Civic Education
- Class Size Reduction - 9th Grade
- Community -Based English Tutoring Program
- Community Day Schools
- County Office of Education - Williams Audits
- Deferred Maintenance
- Gifted and Talented
- High Priority Schools Grant Program
- Instructional Materials
- Local Assistance - Commission on Teacher Credentialing
- Math and Reading Professional Development
- National Board Certification Incentives
- PE Teacher Incentive Program
- Peer Assistance and Review
- Principal Training Program
- Professional Development Block Grant Program
- Pupil Retention Block Grant Program
- Reader Services for the Blind
- Regional Occupational Centers and Programs
- School and Library Improvement Block Grant
- School Safety Block Grant (8-12)
- School Safety Competitive Grants
- Specialized Secondary Program Grants
- Supplemental Instruction
- Supplemental School Counseling Program
- Targeted Instructional Improvement Block Grant
- Teacher Credentialing Block Grant
- Teacher Dismissal Apportionment
SPI Implementation of K-12 Program Reductions
Gives the SPI the authority to reduce principal apportionments to school districts in
order to implement program reductions enacted by this bill if (a) the State Controller
has already disbursed funds for programs reduced, and (b) the SPI has determined
there is no other way to recover these disbursed funds.
