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2018 Budget Trailer Bill Analyses Packet

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2018 Budget Trailer Bill Analyses Packet Page 0 2018 Budget Trailer Bill Analyses Packet Bills anticipated for Monday, June 18, 2018 Assembly Topic Senate Page AB 1808 Education SB 842 1 AB 1809 Higher Education SB 843 10 AB 1810 Health SB 844 15 AB 1811 Human Services SB 845 23 AB 1812 Public Safety SB 846 28 AB 1813 Courts SB 847 30 AB 1821 Taxes SB 855 31 (EITC, Hiring Credit, CalCompetes) AB 1827 No Place Like Home SB 861 32 AB 1832 General Government III SB 866 33 (Civil Service, Labor, Census) AB 1836 911 Fee SB 870 39 AB 1837 Film Tax Credit SB 871 40 0 Page 1 SENATE THIRD READING SB 842 (Committee on Budget and Fiscal Review) As Amended June 12, 2018 SUMMARY: This is the K-12 Education Omnibus Trailer Bill for 2018-19 budget. This bill makes various statutory changes to implement the 2018-19 budget. Specifically, this bill: Early Childhood Education 1) Updates the standard reimbursement rate and state preschool reimbursement rate, commencing July 1, 2018 to reflect a cost-of-living adjustment and other increases provided in the 2018-19 budget. 2) Updates the infant reimbursement rate adjustment factor from 1.7 to 2.44 and the toddler reimbursement rate adjustment factor from 1.4 to 1.8. In addition, the adjustment factor for children with exceptional needs is increased from 1.2 to 1.54 and the adjustment factor for severely disabled children is increased from 1.5 to 1.93. These rate adjustment factors are intended to account for the higher costs of serving children in these categories. 3) Makes permanent a provision to hold providers receiving the regional market rate (RMR) for voucher-based child care harmless so no provider receives less under current rates than it received under the regional market rate ceiling that existed in that region on December 31, 2017 (previously this hold harmless expired December 31, 2018). 4) Allocates $167.2 million in Proposition 98 funding for the Inclusive Early Education Expansion program. Under this program grants will be provided to local educational agencies (LEAs) to increase access to subsidized early care and education programs for children from ages zero to five. Priority for grants shall be given to those applicants that have a need for expanded access to inclusive early care, serve low-income communities, leverage local partnerships, are able to serve a broad range of disabilities, and plan to, or already do, serve children with disabilities in proportion to the rate of identification similar to LEAs in their area. Funds may be used for one-time infrastructure costs, adaptive equipment, and professional development and grantees must provide a local match. The California Department of Education (CDE) will administer the program and conduct an evaluation of the program and direct a related stakeholder workgroup. 5) Establishes the Inclusive Early Care Pilot Program. Under this program, county offices of education may apply to receive grants to increase access to early care and education programs for children with exceptional needs, including severe disabilities, from ages zero to five. Grantees may use funds for a variety of purposes to build local and regional capacity, including, but not limited to, outreach coordinators, placement navigators, adaptive equipment, professional learning, and assessment and evaluation tools among others. Priority shall be given to applicants with a demonstrated need for expanded access to inclusive early care and education within their county, particularly within in low- income and high-need communities. The CDE shall administer the program and conduct an evaluation. For the purposes of this program, $10 million in one-time federal funding is provided in the 2018-19 budget. 1 Page 2 6) Requires the CDE to adopt regulations for California State Preschool programs under Title 5, on or before July 1, 2019, related to outdoor shade, drinking water, restrooms, supervision of children, and maintenance of indoor and outdoor space. Allows the CDE to adopt emergency regulations to meet the requirements of this section. Clarifies that the licensing flexibility provisions apply to any LEA-operated classroom that is funded in whole or part under the State Preschool Program. In addition, the Uniform Complaint Procedures section of this bill adds related provisions establishing a process for complaints related to the preschool health and safety requirements added to Title 5 regulations pursuant to this section. 7) Makes other technical changes including, specifying that alternative payment programs have between 12 and 24 months to expend funds allocated within a fiscal year. K-12 Education 1) Allocates $3.67 billion in ongoing Proposition 98 funding to further implement the Local Control Funding Formula (LCFF) for school districts and charter schools, bringing the total amount provided for LCFF to $61.1 billion in the 2018-19 fiscal year. This funding includes a 3.7 percent cost-of-living adjustment for the 2018-19 fiscal year for the purposes of calculating the LCFF targets for school districts and charter schools. 2) Provides $697.8 million in discretionary one-time Proposition 98 funding to be distributed to school districts, charter schools and county offices of education on a per- student basis and offsets any applicable mandate reimbursement claims owed to schools. Allows for these funds to first offset an LEA’s allocation with the balance of any payments due to the state for the Medi-Cal billing settlements. States legislative intent that these funds be prioritized for deferred maintenance, professional development, beginning teacher induction programs, instructional materials, technology infrastructure, and any other investments necessary to support implementation of state academic standards. 3) Allocates $300 million in one-time Proposition 98 funding for the Low-Performing Students Block Grant in order to provide LEAs with additional funding for low- performing students who are not otherwise identified for supplemental grant funding under the local control funding formula or eligible for special education services. This funding is provided on a per-student basis for students that do not meet specified achievement standards on state English language arts or mathematics assessments. Specifies that funds shall be used for evidence-based services that directly support pupil academic achievement, including, but not limited to, professional development activities for certificated staff, instructional materials, or additional student supports. Requires LEAs to develop a plan on how the funds will be used and report to the Superintendent. Requires the CDE to compile the plans and report to the Legislature. 4) Includes $100 million in one-time General Fund for the Full-Day Kindergarten Facilities Grant Program. The State Allocation Board is charged with allocating grants to school districts that lack the facilities to provide full-day kindergarten. Priority for grants is provided for districts with financial hardship or districts that have a high population of low-income students. Requires a local match requirement, except for those districts that meet the financial hardship requirements. 2 Page 3 5) Provides $150 million in ongoing Proposition 98 funding to establish the K-12 component of the Strong Workforce Program for purposes of expanding the availability of quality high-quality, industry-aligned career technical education (CTE). Funding is allocated through the Community College Chancellor's Office to existing regional consortia based on the following factors in each region: 1) The unemployment rate (33 percent) 2) The region’s total average daily attendance for students in grades 7 to 12 (33 percent), and 3) The proportion of projected job openings (34 percent). Regional consortia are required to collaborate with regional workforce and education entities, develop a grant application process and allocate grants to LEAs to implement or expand CTE programs aligned with the consortia's regional plan. Requires grantees to provide a local match and requires specified data to be reported to the consortia and CDE. Includes $14 million in ongoing Proposition 98 funding to support Workforce Pathway Coordinators, K-14 Technical Assistance Providers and the consortia administrative costs. Requires the Workforce Pathway Coordinators and Technical Assistance Providers to also provide technical assistance for the grantees of the CTE Incentive Grant program. 6) Dedicates $150 million in ongoing Proposition 98 funding for the existing CTE Incentive Grant program. Makes changes to the CTE Incentive Grant program to include a 2:1 local match requirement, includes additional reporting requirements for the CDE, eliminates the CTE Incentive Grant technical assistance coordinators and specifies that the K-12 Workforce Pathway Coordinators and the K–14 Technical Assistance Providers established through the Strong Workforce program will provide technical assistance to grant applicants. 7) Dedicates a total of $75 million in one-time Proposition 98 funding for locally sponsored teacher residency programs for teacher shortage subject areas. Specifies that $50 million is for teacher residency programs for special education teachers and $25 million is for teacher residency programs for science, technology, engineering and mathematics (STEM) and bilingual education teachers. The Commission on Teacher Credentialing is charged with administering the program to provide competitive grants to LEAs of up to $20,000 per teacher. Grantees are required to provide a 1:1 local match. Funds can be used for a variety of purposes,
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