sb_70_Education Finance_budget act of 2011

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AMENDED IN ASSEMBLY MARCH 14, 2011

SENATE BILL No. 70

Introduced by Committee on Budget and Fiscal Review

January 10, 2011

An act relating to the Budget Act of 2011. An act to amend Sections1240.3, 2550, 2558.46, 8201, 8208, 8263.1, 8263.4, 8354, 8357, 8447,8499, 14041.5, 14041.6, 17070.766, 17463.7, 17584.1, 17587, 17592.71,33128.3, 41203.1, 42238.146, 42605, 42606, 45023.1, 45023.4, 46201.2,52124.3, 60200.7, 69432.7, 69432.9, 69433.6, 76243, 76300, 84043,

and 84321.6 of, to amend and renumber Section 60422.1 of, and to addSections 8263.2, 14041.65, 41204.3, 69433.2, and 84321.7 to, theEducation Code, to amend Section 11323.2 of the Welfare andInstitutions Code, and to amend Items 6110-161-0001, 6110-485, and6110-488 of Section 2.00 of the Budget Act of 2010 (Chapter 712 of theStatutes of 2010), relating to education fnance, making anappropriation therefor, and declaring the urgency thereof, to take effectimmediately, bill related to the budget.

legislative counsels digest

SB 70, as amended, Committee on Budget and Fiscal Review.BudgetAct of 2011. Education fnance: Budget Act of 2011.

(1) Existing law requires the county superintendent of schools ofeach county, among other specifed duties, to make annual visits toeach school in his or her county to observe its operation and to learnof its problems. Existing law requires that the priority objective of thosevisits is the determination of whether each school has suffcienttextbooks, as defned. Existing law, until July 1, 2013, and for the200809 to the 201213 fscal years, inclusive, describes what is meant

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by suffcient textbooks or instructional materials for purposes of thesevisits by the county superintendent of schools.

This bill would extend the operation of this provision by 2 fscal years,until July 1, 2015.

(2) Existing law requires the Superintendent of Public Instruction tomake specifed computations to determine the amount to be allocated

for direct services and other purposes provided by countysuperintendents of schools. Under this provision, in each of the fscalyears from 200809 to 201213, inclusive, the units of average dailyattendance (ADA) are required to include the same amount of ADA forclasses for adults and regional occupational centers and programs usedin the calculation for the 200708 fscal year.

This bill would extend this provision to apply to the 201314 and201415 fscal years.

(3) Existing law requires a revenue limit to be calculated for eachcounty superintendent of schools, adjusted for various factors, andreduced, as specifed. Existing law reduces the revenue limit for eachcounty superintendent of schools for the 201011 fscal year by a defcit

factor of 18.250%.This bill would set the defcit factor for each county superintendent

of schools for the 201112 and 201213 fscal years at 19.892%.(4) The Child Care and Development Services Act, administered by

the State Department of Education, provides that children who are 13years of age or younger and their parents are eligible, with certainrequirements, for child care and development services.

This bill would instead provide that children who are 10 years of ageor younger, children with exceptional needs, children 12 years of ageor younger who are recipients of child protective services or at risk ofabuse, neglect, or exploitation, children 12 years of age or youngerwho are provided services during nontraditional hours, children 12years of age or younger who are homeless, and children who are 11and 12 years of age, as funding permits, as specifed, are eligible, withcertain requirements, for child care and development services.

(5) Existing law provides that the preferred placement for a childwho is 11 or 12 years of age and is otherwise eligible for subsidizedchild care services is in a before or after school program. Existing lawrequires contractors to report annually to the State Department ofEducation the amount of savings resulting from these provisions, asspecifed.

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This bill would instead provide that a child who is 11 or 12 years ofage and who is otherwise eligible for subsidized child care anddevelopment services, except for his or her age, shall be given frstpriority for enrollment, and in cases of programs operating at fullcapacity, frst priority on the waiting list for a before or after schoolprogram, as specifed, and would require contractors to provide each

family of an otherwise eligible 11 or 12 year old child with informationabout the availability of before and after school programs located inthe familys community. This bill would remove provisions requiringcontractors to report savings to the department.

(6) Existing law provides that necessary supportive services shallbe available to every participant in the CalWORKs program, includingchild care, as specifed. Existing law provides that, to the extent fundsare available, paid child care shall be available to a participant witha dependent child in the assistance unit who needs paid child care ifthe child is 11 or 12 years of age.

This bill would remove the requirement that paid child care beavailable to a participant for a child who is 11 or 12 years of age.

(7) Existing law provides for income eligibility standards for familiesto receive child care and development services. Existing law providesthat income eligible, for the purposes of the Child Care andDevelopment Services Act, means that a familys adjusted monthlyincome is at or below 75% of the state median income, adjusted forfamily size, and adjusted annually.

This bill instead would provide that income eligible, for thepurposes of the Child Care and Development Services Act, means thata familys adjusted monthly income is at or below 70% of the statemedian income, adjusted for family size, and adjusted annually.

The bill would provide for the reduction of child care and developmentservices, and the disenrollment of specifed families from subsidizedchild care services, in accordance with prescribed priorities.

(8) Existing law provides for 3 stages of child care for CalWORKsrecipients. Existing law provides that the 3rd stage of child care beginswhen a funded child care space is available, and further provides thatCalWORKs recipients are eligible for this stage of child care. Existinglaw also provides that persons who received a lump-sum diversionpayment or diversion services and former CalWORKs participants areeligible if they have an income that does not exceed 75% of the statemedian income.

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This bill instead would provide that persons who received a lump-sumdiversion payment or diversion services and former CalWORKsparticipants are eligible if they have an income that does not exceed70% of the state median income.

(9) Existing law requires the cost of state-funded child care servicesto be governed by regional market rates and requires the regional

market rate ceilings to be established at the 85th percentile of the 2005regional market rate survey for that region. Existing law prohibitsreimbursement to license-exempt child care providers from exceeding80% of the family child care home rate established pursuant to theseprovisions.

This bill would instead prohibit reimbursement to license-exemptchild care providers from exceeding 60% of the family child care homerate, effective July 1, 2011.

The bill would adjust the family fee schedule that was in effect forthe 200708, 200809, 200910, 201011 fscal years to reect incomeeligibility limits specifed in this bill for the 201112 fscal year. Thebill would require the adjusted fee schedule to be submitted to the

Department of Finance for referral in order to be implemented by July1, 2011.

(10) Existing law limits the amount of specifed revenue limitapportionments that counts towards the minimum funding obligationfor the following fscal year to $1,601,655,000.

This bill would decrease that amount to $1,101,655,000.(11) Existing law requires the Controller to draw warrants on the

State Treasury in each month of each year in specifed amounts forprincipal apportionments for purposes of funding school districts, countysuperintendents of schools, and community college districts. Existinglaw defers the drawing of those warrants, as specifed.

This bill would defer additional specifed amounts of the warrantsfor school districts and county superintendents of schools from April,May, and June to July, and from March and April to August. The billwould make additional deferrals, from February to July, August, andSeptember, from April to September, and from May to September, forthe 201011 fscal year only.

(12) The Leroy F. Greene School Facilities Act of 1998 requires theState Allocation Board to require school districts applying for fundsunder that act to deposit, into a specifed account for ongoing and majormaintenance of school buildings, an amount equal to or greater than3% of the total general fund expenditures of the applicant school district.

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Existing law, for the 200809 to the 201213 fscal years, inclusive,reduces that deposit requirement to an amount equal to 1% of the totalgeneral fund expenditures of the applicant school district. Existing lawexempts a school district that maintains its facilities in good repair, asdefned, from this 1% requirement.

This bill would extend the operation of this provision by 2 fscal years,

through the 201415 fscal year.(13) Existing law, until January 1, 2012, authorizes a school district

to deposit the proceeds from the sale of surplus school property, togetherwith any personal property located on that property, purchased entirelywith local funds, into the general fund of the school district and to usethose proceeds for any one-time general fund purpose.

This bill would extend the operation of this provision to January 1,2014.

(14) Existing law, until July 1, 2013, renders inoperative arequirement for the governing board of a school district to make areport regarding proposals and plans for expenditure for the deferredmaintenance of school district facilities.

This bill would extend the operation of this provision to July 1, 2015.(15) Existing law, to become operative on July 1, 2013, will authorize

the State Allocation Board to each year reserve an amount not to exceed10% of the funds transferred from any source to the State SchoolDeferred Maintenance Fund for apportionments to school districts ininstances of extreme hardship.

This bill would delay the operation of this provision until July 1, 2015.(16) Existing law establishes the School Facilities Emergency Repair

Account in the State Treasury, and requires the State Allocation Boardto administer the account. Existing law establishes the Proposition 98Reversion Account in the General Fund, and requires that theLegislature, from time to time, transfer into this account moneyspreviously appropriated in satisfaction of the constitutional minimumfunding requirements that have not been disbursed or otherwiseencumbered for the purposes for which they were appropriated. Existinglaw generally requires an amount, equaling 50% of the unappropriatedbalance of the Proposition 98 Reversion Account or $100,000,000,whichever is greater, to be transferred in the annual Budget Act fromthe Proposition 98 Reversion Account to the School FacilitiesEmergency Repair Account. However, the amount to be transferredunder this provision was set at zero for the 200910 fscal year.

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This bill would also set at zero the amount to be transferred underthis provision from the Proposition 98 Reversion Account to the SchoolFacilities Emergency Repair Account for the 201011 and 201112fscal years.

(17) Existing law, for the 200910 fscal year, sets the minimum staterequirement for a local educational agencys reserve for economic

uncertainties at 13 of the percentage for a reserve adopted by the StateBoard of Education as of May 1, 2009, and requires a school districtto make progress in the 201011 fscal year to returning to compliancewith the specifed standards and criteria adopted by the state board.Existing law restores this requirement, for the 201112 fscal year, tothe percentage adopted by the state board as of May 1, 2009.

This bill instead would provide that, for the 201011 and 201112fscal years, the minimum state requirement for a local educationalagencys reserve for economic uncertainties is 13 of the percentage fora reserve adopted by the state board as of May 1, 2009, and require aschool district to make progress in the 201213 fscal year to returningto compliance with the specifed standards and criteria adopted by the

state board. This bill would restore this requirement, for the 201314fscal year, to the percentage adopted by the state board as of May 1,2009.

(18) Existing law requires, for the 199091 fscal year and eachfscal year thereafter, that moneys to be applied by the state for thesupport of school districts, community college districts, and directelementary and secondary level instructional services provided by thestate be distributed in accordance with certain calculations governingthe proration of those moneys among the 3 segments of public education.Existing law makes that provision inapplicable to the fscal yearsbetween 199293 and 201011, inclusive.

This bill would make that provision inapplicable to the 201112 fscalyear.

(19) Existing law prescribes the percentage of General Fund revenuesappropriated for school districts and community college districts forpurposes of the provisions of the California Constitution requiringminimum funding for the public schools.

This bill would require the Director of Finance to adjust thatpercentage in a specifed manner for purposes of the 201112 fscalyear.

(20) Existing law requires the county superintendent of schools todetermine a revenue limit for each school district in the county and

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requires the amount of the revenue limit to be adjusted for variousfactors. Existing law reduces the revenue limit for each school districtfor the 201011 fscal year by a defcit factor of 17.963%.

This bill would maintain the defcit factor for each school district forthe 201112 fscal year at 19.608%.

(21) Existing law establishes various categorical education programs,

and appropriates the funding for those programs in the annual BudgetAct. Existing law requires the Superintendent of Public Instruction, forthe 200809 to 201213 fscal years, inclusive, to apportion from theamount provided in the annual Budget Act for specifed categoricaleducation programs an amount based on the same relative proportionthat the local educational agency received in the 200809 fscal yearfor those programs, with certain exceptions. Existing law authorizesschool districts, for the 200809 to 201213 fscal years, inclusive, touse the categorical education program funds, with specifed exceptions,for any educational purpose.

This bill would extend the operation of this provision for 2 additionalfscal years, thus extending it through the 201415 fscal year. By

allowing funds appropriated for specifed purposes to be expended forany educational purpose for 2 additional fscal years, the bill wouldmake an appropriation.

(22) Existing law requires the Superintendent of Public Instructionto allocate, for the 201011 fscal year, a supplemental categoricalblock grant to a charter school that began operation in the 200809,200910, or 201011 fscal year.

This bill would extend the operation of this provision to require theSuperintendent to make these allocations for the 201112 fscal year,and to include charter schools that began operation in the 201112fscal year.

(23) Existing law establishes the Jack OConnell Beginning-TeacherSalary Incentive Program, under which a county superintendent ofschools, or the county board of education, may increase the salary forcertain teachers on its adopted certifcated employee salary schedule,as specifed. The provisions establishing the program require certaincalculations to be made with respect to the average daily attendance(ADA) of the participating local educational agencies, and morespecifcally require specifed adjustments to be made in the calculationof ADA attributable to regional occupational centers and programs forthe 200809 to the 201213 fscal years, inclusive.

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This bill would extend the requirement for these adjustments to bemade to the 201314 and 201415 fscal years.

(24) Existing law, commencing with the 200910 school year andcontinuing through the 201213 school year, authorizes a schooldistrict, county offce of education, or charter school to reduce theequivalent of up to 5 days of instruction or the equivalent number of

instructional minutes without incurring fscal penalties.This bill would extend the operation of this provision for 2 additional

fscal years, thus extending it through the 201415 school year.(25) Existing law establishes the Class Size Reduction Program,

under which a participating school district or county offce of educationreduces class size to 20 pupils per class in kindergarten and grades 1to 3, inclusive. Existing law provides that, for the 200809, 200910,201011, and 201112 fscal years, a school district that has receivedfunding under the program but has not implemented its class sizereduction program for all classes and grades for which it receivedfunding under the program, an amount is deducted from the nextprincipal apportionment of state funds to that district in accordance

with a schedule.This bill would extend the operation of this provision to the 201213

and 201314 fscal years.(26) Existing law prohibits the State Board of Education from

adopting instructional materials until the 201314 school year.This bill would extend this prohibition through the 201516 school

year.(27) Existing law, for the 200809 to the 201213 fscal years,

inclusive, provides that the governing board of a school district is notrequired to provide pupils with instructional materials by a specifedperiod of time following adoption of those materials by the State Boardof Education.

This bill would extend the operation of this provision by 2 fscal years,through the 201415 fscal year.

(28) Under existing law, a community college or community collegedistrict may not permit any person to access student records withoutthe written consent of the student or under judicial order for access,with specifed exceptions generally relating to education. Existing lawprovides that a person, persons, agency, or organization that ispermitted access to student records is prohibited from further disclosingthe records without the written consent of the student, as specifed.

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This bill would allow a person, persons, agency, or organization thatis permitted access to student records to disclose them pursuant to theextent permitted under specifed federal law and state law.

(29) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos CalGrant Program (Cal Grant Program), establishes the Cal Grant A andB Entitlement Awards, the California Community College Transfer Cal

Grant Entitlement Awards, the Competitive Cal Grant A and B Awards,the Cal Grant C Awards, and the Cal Grant T Awards under theadministration of the Student Aid Commission, and establishes eligibilityrequirements for awards under these programs for participating studentsattending qualifying institutions.

Existing law sets forth the maximum household income and assetlevels for participants in the various grant programs under the act.These maximum levels are set forth as they were adopted by thecommission for the 200102 academic year, but have been annuallyadjusted based on the percentage change in the cost of living as defnedin a specifed provision of the California Constitution.

This bill would provide that the maximum household income and

asset levels applicable to a renewing applicant would be the greater ofthe adjusted household income and asset levels or the maximumhousehold income and asset levels at the time of the renewing recipientsinitial Cal Grant award, as specifed.

This bill would impose additional requirements, except as specifed,on qualifying institutions, requiring the commission to certify by October1 of each year the institutions latest 3-year cohort default rate as mostrecently reported by the United States Department of Education. Thebill would provide that an otherwise qualifying institution that did notmeet a specifed 3-year cohort default rate would be ineligible for newCal Grant awards at the institution.

This bill would require the Legislative Analysts Offce to submit areport to the Legislature by January 1, 2013, on the implementation ofthe 3-year cohort default rate provisions of the act, as specifed.

The bill would specify thatfnancial need, for the purposes of the act,would be determined to establish both an applicants initial eligibilityfor a Cal Grant award and a renewing applicants continued eligibilityusing federal fnancial need methodology, as prescribed.

The bill would also require participating institutions, beginning in2012, to annually report to the commission enrollment, persistence,and graduation data, as well as job placement, salary, and wageinformation for undergraduate programs, as specifed.

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(30) Existing law establishes community college districts under theadministration of community college governing boards, and authorizesthese districts to provide instruction at community college campusesthroughout the state. Existing law requires the governing board of eachcommunity college district to charge each student, with specifedexceptions, a fee of $26 per unit per semester, effective with the fall

term of the 200910 academic year.This bill would increase that fee to $36 per unit per semester, effective

with the fall term of the 201112 academic year.(31) Existing law, for the 200910 to 201213 fscal years, inclusive,

authorizes a community college district to use funds apportioned to thedistrict for specifed categorical programs, for purposes of a prescribedlist of programs.

This bill would extend the operation of this provision for 2 additionalfscal years, through the 201415 fscal year.

(32) Existing law requires the Board of Governors of the CaliforniaCommunity Colleges to adopt regulations for the payment ofapportionments to community college districts. Existing law,

notwithstanding the board of governorsauthority in this respect, makesvarious adjustments to the payment of these apportionments.

This bill would revise the manner in which these apportionments aremade according to specifed criteria. The bill would appropriate$961,000,000 from the General Fund to the Board of Governors of theCalifornia Community Colleges for apportionments to communitycollege districts for expenditure during the 201213 fscal year inaccordance with a specifed schedule.

(33) Under existing law, the Controller is required to draw warrantson the State Treasury in each month of each year in specifed amountsfor purposes of funding school districts, county superintendents ofschools, and community college districts. Existing law defers thedrawing of those warrants, as specifed.

This bill would, commencing with the 201112 fscal year, authorizethe Controller to issue up to $13 million of warrants for a communitycollege district for the principal apportionments for the month of June,that are instead to be drawn in July, subject to the approval of theDirector of Finance, as specifed.

If the total amount requested by community college districts exceeds$13 million, the Controller, the Treasurer, and the Director of Financemay authorize additional payments, not to exceed $39 million. Thedetermination whether there is suffcient cash available to make these

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the State Department of Education to use those funds for eligible familiespursuant to a specifed provision as it read on January 1, 2011.

(38) This bill would appropriate $905,700,000 from the GeneralFund to the State Department of Education for 10 specifed programsaccording to a specifed schedule, and would require the departmentto encumber these funds by July 31, 2012. The bill would provide that,

for purposes of satisfying the minimum annual funding obligation forschool districts required by the California Constitution, the appropriatedfunds are General Fund revenues appropriated for school districts andcommunity college districts for the 201213 fscal year.

(39) Existing law creates the Charter School Revolving Loan Fundin the State Treasury and authorizes the Superintendent of PublicInstruction to make loans from the fund to applicant charter schools inaccordance with specifed criteria.

This bill would appropriate $5,000,000 from the General Fund toaugment the Charter School Revolving Loan Fund.

(40) This bill would set the cost-of-living adjustment for specifeditems in the Budget Act of 2011 at 0% for the 201112 fscal year,

notwithstanding the cost-of-living adjustment specifed in existingstatutes.

(41) This bill would require funds appropriated pursuant to specifeditems in the Budget Act of 2011 to be encumbered by July 31, 2012.

(42) Existing law provides for collection and maintenance ofeducational data. Existing law requires the State Department ofEducation to contract for the development of the California LongitudinalPupil Achievement Data System (CALPADS), for the purpose ofproviding for the retention and analysis of longitudinal pupilachievement data on specifed achievement tests.

This bill would appropriate $2,257,000 from the Federal Trust Fundto the State Department of Education, in accordance with a specifedschedule, for purposes of the implementation and support of theCALPADS.

The bill would require, as a condition of receiving funds to administerCALPADS, the State Department of Education to ensure that localeducational agencies are provided with standardized templates thatinclude prepopulated data necessary to meet the requirements of theSchool Accountability Report Card.

(43) Under existing law, the amount of revenue that a district maycollect annually for general purposes, called a revenue limit, iscalculated in accordance with various statutory formulas. A basic aid

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school district is a school district where property tax revenues exceedthe revenue limit and the district consequently does not receive a stateapportionment.

This bill would express legislative intent that basic aid school districtsassume categorical funding reductions proportionate to the revenuelimit reductions implemented for nonbasic aid school districts in the

200809 and 200910 fscal years. The bill would include calculationsto implement these funding reductions.

(44) Existing law appropriates funding for class size reduction inkindergarten and grades 1 to 3, inclusive, to be expended consistentwith the specifed requirements.

This bill would reduce that appropriation in accordance with specifedrequirements, and would identify funds that the State Department ofEducation would be required to use if the funds appropriated for thisprogram are determined to be insuffcient.

The bill would require the Superintendent of Public Instruction tocertify to the Controller the amounts needed for the 201112 fscal yearto fund the class size reduction program and set forth a schedule for

the transfer of that funding. The bill would require the Controller totransfer that funding from the General Fund to the State School Fund,thereby making an appropriation.

The bill would require the Superintendent, before making eachcertifcation, to notify the Department of Finance, the LegislativeAnalyst, and the appropriate policy and fscal committees of theLegislature regarding the amounts the Superintendent intends to certifyand would require the notifcation to include the data used indetermining the amounts to be certifed.

(45) Existing law establishes the University of California, which isadministered by the Regents of the University of California and theCalifornia State University, which is administered by the Trustees ofthe California State University.

This bill would require the Regents of the University of Californiaand the Trustees of the California State University, in implementingreductions contained in the Budget Act of 2011, to minimize fee andenrollment impacts on students by targeting actions that lower the costsof instruction and administration. The bill would require the regentsand the trustees to submit recommended budget options, with savingsestimates for each identifed solution, to the Legislature, the Governor,and stakeholders for review and comment by June 1, 2011, prior toadoption of a fnal plan. The bill would state enrollment goals for the

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201112 academic year and require the regents and the trustees toreport to the Legislature by May 1, 2012, on whether the University ofCalifornia and the California State University have met their respective201112 enrollment goals. If the goals are not met, the Director ofFinance would be directed to revert the total amount of enrollmentfunding associated with the total share of the enrollment goal that was

not met to the General Fund by May 15, 2012. This bill would requirethe regents and the trustees to submit a fnal detailed report to theGovernor, the Department of Finance, and the Legislature, as specifed,by September 1, 2012.

(46) This bill would make conforming changes, correct somecross-references, and make other technical, nonsubstantive changes.

(47) The funds appropriated by this bill would be applied towardthe minimum funding requirements for school districts and communitycollege districts imposed by Section 8 of Article XVI of the CaliforniaConstitution.

(48) The California Constitution authorizes the Governor to declarea fscal emergency and to call the Legislature into special session for

that purpose. Governor Schwarzenegger issued a proclamationdeclaring a fscal emergency, and calling a special session for thispurpose, on December 6, 2010. Governor Brown issued a proclamationon January 20, 2011, declaring and reaffrming that a fscal emergencyexists and stating that his proclamation supersedes the earlierproclamation for purposes of that constitutional provision.

This bill would state that it addresses the fscal emergency declaredand reaffrmed by the Governor by proclamation issued on January20, 2011, pursuant to the California Constitution.

(49) This bill would declare that it is to take immediate effect as anurgency statute and a bill providing for appropriations related to theBudget Bill.

This bill would express the intent of the Legislature to enact statutorychanges relating to the Budget Act of 2011.

Vote: majority 23. Appropriation: no yes. Fiscal committee: noyes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1. It is the intent of the Legislature to enact statutorychanges relating to the Budget Act of 2011.

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SECTION 1. Section 1240.3 of the Education Code is amendedto read:

1240.3. (a) For the purposes of Section 1240, for the 200809to 201213 201415fscal years, inclusive, suffcient textbooksor instructional materials include standards-aligned textbooks orinstructional materials, or both, that were adopted prior to July 1,

2008, by the state board or local educational agency pursuant tostatute, unless those local educational agencies purchased orarranged to purchase textbooks or instructional materials adoptedby the state board after that date. It is the intent of the Legislaturethat each local educational agency provide each pupil withstandards-aligned textbooks or instructional materials from thesame adoption, consistent with Sections 60119 and 60422. Thissection does not require a local educational agency to purchase allof the instructional materials included in an adoption if thematerials that are purchased are made available to all the pupilsfor whom they are intended in all of the schools within the localeducational agency.

(b) Notwithstanding Section 1240 or any other law, for the200809 to 201213 201415fscal years, inclusive, a countysuperintendent of schools, in making visits to schools as specifedin Section 1240, shall determine the status of suffcient textbooksas defned in subdivision (a).

(c) This section shall become inoperative on July 1, 2013 2015,and, as of January 1, 2014 2016, is repealed, unless a later enactedstatute that is enacted before January 1, 2014 2016, deletes orextends the dates on which it becomes inoperative and is repealed.

SEC. 2. Section 2550 of the Education Code is amended toread:

2550. For each fscal year, the Superintendent shall make thefollowing computations to determine the amount to be allocatedfor direct services and other purposes provided by countysuperintendents of schools:

(a) For programs operated pursuant to subdivision (a) of Section14054, the Superintendent shall:

(1) Determine the allowances that county superintendentsreceived per unit of average daily attendance in the prior fscalyear. The Superintendent shall increase each amount by apercentage equal to the ination allowance calculated for thecurrent fscal year pursuant to Section 2557.

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(2) Multiply each amount determined in paragraph (1) by theactual number of units of average daily attendance in the priorfscal year for programs maintained by each county superintendent.For purposes of this paragraph, the number of units of averagedaily attendance shall include only units generated by elementarydistricts with less than 901 units of average daily attendance, high

school districts with less than 301 units of average daily attendance,and unifed school districts with less than 1,501 units of averagedaily attendance within each county superintendents jurisdiction.

(b) For programs operated pursuant to subdivision (b) of Section14054, the Superintendent shall:

(1) (A) For the 19992000 fscal year, determine the rate perunit of average daily attendance calculated for each county offceof education pursuant to subdivision (b) of Section 2567 andincrease each rate by a percentage equal to the ination allowancecalculated in Section 2557.

(B) For the 200001 fscal year, determine the rate per unit ofaverage daily attendance calculated for each county offce of

education pursuant to subdivision (b) of Section 2568 and increaseeach rate by a percentage equal to the ination allowance calculatedin Section 2557.

(C) For the 200102 fscal year and each fscal year thereafter,determine the allowances that county superintendents received perunit of average daily attendance in the prior fscal year. TheSuperintendent of Public Instruction shall increase each amountby a percentage equal to the ination allowance calculated for thecurrent fscal year pursuant to Section 2557.

(2) (A) Multiply each amount determined in paragraph (1) bythe units of average daily attendance in the current fscal year forprograms for kindergarten and grades 1 to 12, inclusive, maintainedby each county superintendent. For the purposes of this paragraph,average daily attendance shall include only the total units ofaverage daily attendance credited to all elementary, high school,and unifed school districts within each county superintendentsjurisdiction and to the county superintendent.

(B) For purposes of this paragraph, in each of the 200809,200910, 201011, 201112, and 201213, 201314, and 201415fscal years, the units of average daily attendance in each of thosefscal years for programs for kindergarten and grades 1 to 12,inclusive, maintained by each county superintendent shall include

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the same amount of average daily attendance for classes for adultsand regional occupational centers and programs used in thecalculation pursuant to this subdivision for the 200708 fscal year.

SEC. 3. Section 2558.46 of the Education Code is amended toread:

2558.46. (a) (1) For the 200304 fscal year, the revenue limit

for each county superintendent of schools determined pursuant tothis article shall be reduced by a 1.195 percent defcit factor.

(2) For the 200405fscal year, the revenue limit for each countysuperintendent of schools determined pursuant to this article shallbe reduced by a 0.323 percent defcit factor.

(3) For the 200304 and 200405 fscal years, the revenue limitfor each county superintendent of schools determined pursuant tothis article shall be reduced further by a 1.826 percent defcit factor.

(4) For the 200506fscal year, the revenue limit for each countysuperintendent of schools determined pursuant to this article shallbe reduced further by a 0.898 percent defcit factor.

(5) For the 200809fscal year, the revenue limit for each county

superintendent of schools determined pursuant to this article shallbe reduced by a 7.839 percent defcit factor.

(6) For the 200910fscal year, the revenue limit for each countysuperintendent of schools determined pursuant to this article shallbe reduced by an 18.621 percent defcit factor.

(7) For the 201011fscal year, the revenue limit for each countysuperintendent of schools determined pursuant to this article shallbe reduced by an 18.250 percent defcit factor.

(8) For the 201112 fscal year, the revenue limit for eachcounty superintendent of schools determined pursuant to this articleshall be reduced by a 19.892 percent defcit factor.

(b) In computing the revenue limit for each countysuperintendent of schools for the 200607 fscal year pursuant tothis article, the revenue limit shall be determined as if the revenuelimit for that county superintendent of schools had been determinedfor the 200304, 200405, and 200506 fscal years without beingreduced by the defcit factors specifed in subdivision (a).

(c) In computing the revenue limit for each countysuperintendent of schools for the 201011 fscal year pursuant tothis article, the revenue limit shall be determined as if the revenuelimit for that county superintendent of schools had been determined

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for the 200910 fscal year without being reduced by the defcitfactors specifed in subdivision (a).

(d) In computing the revenue limit for each countysuperintendent of schools for the 201112 fscal year pursuant tothis article, the revenue limit shall be determined as if the revenuelimit for that county superintendent of schools had been determined

for the 201011 fscal year without being reduced by the defcitfactors specifed in subdivision (a).

(e) In computing the revenue limit for each countysuperintendent of schools for the 201213 fscal year pursuant tothis article, the revenue limit shall be determined as if the revenuelimit for that county superintendent of schools had been determinedfor the 201112 fscal year without being reduced by the defcitfactor specifed in subdivision (a).


8201. The purpose of this chapter is as follows:(a) To provide a comprehensive, coordinated, and cost-effective

system of child care and development services for children to age13 and their parents, who are 10 years of age or younger, forchildren with exceptional needs as defned in subdivision (l) ofSection 8208, for children 12 years of age or younger who arerecipients of child protective services or at risk of abuse, neglect,or exploitation as described in subparagraph (D) of paragraph(1) of subdivision (a) of Section 8263 and as defned in subdivision(k) of Section 8208, for children 12 years of age or younger whoare provided services during nontraditional hours as defned insubdivision (al) of Section 8208, for children 12 years of age oryounger who are homeless as described in subparagraph (C) ofparagraph (1) of subdivision (a) of Section 8263, and for childrenwho are 11 and 12 years of age, as funding permits, pursuant tosubdivision (h) of Section 8447, including a full range ofsupervision, health, and support services through full- and part-timeprograms.

(b) To encourage community-level coordination in support ofchild care and development services.

(c) To provide an environment that is healthy and nurturing forall children in child care and development programs.

(d) To provide the opportunity for positive parenting to takeplace through understanding of human growth and development.

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(e) To reduce strain between parent and child in order to preventabuse, neglect, or exploitation.

(f) To enhance the cognitive development of children, withparticular emphasis upon those children who require specialassistance, including bilingual capabilities to attain their fullpotential.

(g) To establish a framework for the expansion of child careand development services.

(h) To empower and encourage parents and families of childrenwho require child care services to take responsibility to review thesafety of the child care program or facility and to evaluate theability of the program or facility to meet the needs of the child.


8208. As used in this chapter:(a) Alternative payments includes payments that are made by

one child care agency to another agency or child care provider forthe provision of child care and development services, and payments

that are made by an agency to a parent for the parents purchaseof child care and development services.

(b) Alternative payment program means a local governmentagency or nonproft organization that has contracted with thedepartment pursuant to Section 8220.2 8220.1 to provide alternativepayments and to provide support services to parents and providers.

(c) Applicant or contracting agency means a school district,community college district, college or university, countysuperintendent of schools, county, city, public agency, privatenontax-exempt agency, private tax-exempt agency, or other entitythat is authorized to establish, maintain, or operate servicespursuant to this chapter. Private agencies and parent cooperatives,duly licensed by law, shall receive the same consideration as anyother authorized entity with no loss of parental decisionmakingprerogatives as consistent with the provisions of this chapter.

(d) Assigned reimbursement rate is that rate established bythe contract with the agency and is derived by dividing the totaldollar amount of the contract by the minimum child day of averagedaily enrollment level of service required.

(e) Attendance means the number of children present at achild care and development facility.Attendance, for the purposesof reimbursement, includes excused absences by children because

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of illness, quarantine, illness or quarantine of their parent, familyemergency, or to spend time with a parent or other relative asrequired by a court of law or that is clearly in the best interest ofthe child.

(f) Capital outlay means the amount paid for the renovationand repair of child care and development facilities to comply with

state and local health and safety standards, and the amount paidfor the state purchase of relocatable child care and developmentfacilities for lease to qualifying contracting agencies.

(g) Caregiver means a person who provides direct care,supervision, and guidance to children in a child care anddevelopment facility.

(h) Child care and development facility means any residenceor building or part thereof in which child care and developmentservices are provided.

(i) Child care and development programs means thoseprograms that offer a full range of services for children frominfancy to 13 who are 10 years of age or younger, for children

with exceptional needs as defned in subdivision (l), for children12 years of age or younger who are recipients of child protectiveservices or at risk of abuse, neglect, or exploitation as describedin subparagraph (D) of paragraph (1) of subdivision (a) of Section8263 and as defned in subdivision (k), for children 12 years ofage or younger who are provided services during nontraditionalhours as defned in subdivision (al), for children 12 years of ageor younger who are homeless as described in subparagraph (C)of paragraph (1) of subdivision (a) of Section 8263, and forchildren who are 11 and 12 years of age, as funding permits,pursuant to subdivision (h) of Section 8447, for any part of a day,by a public or private agency, in centers and family child carehomes. These programs include, but are not limited to, all of thefollowing:

(1) General child care and development.(2) Migrant child care and development.(3) Child care provided by the California School Age Families

Education Program (Article 7.1 (commencing with Section 54740)of Chapter 9 of Part 29 of Division 4 of Title 2).

(4) California state preschool program.(5) Resource and referral.

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(6) Child care and development services for children withexceptional needs.

(7) Family child care home education network.(8) Alternative payment.(9) Schoolage community child care.(j) Child care and development servicesmeans those services

designed to meet a wide variety of needs of children and theirfamilies, while their parents or guardians are working, in training,seeking employment, incapacitated, or in need of respite. Theseservices may include direct care and supervision, instructionalactivities, resource and referral programs, and alternative paymentarrangements.

(k) Children at risk of abuse, neglect, or exploitation meanschildren who are so identifed in a written referral from a legal,medical, or social service agency, or emergency shelter.

(l) Children with exceptional needs means either of thefollowing:

(1) Infants and toddlers under three years of age who have been

determined to be eligible for early intervention services pursuantto the California Early Intervention Services Act (Title 14(commencing with Section 95000) of the Government Code) andits implementing regulations. These children include an infant ortoddler with a developmental delay or established risk condition,or who is at high risk of having a substantial developmentaldisability, as defned in subdivision (a) of Section 95014 of theGovernment Code. These children shall have active individualizedfamily service plans, shall be receiving early intervention services,and shall be children who require the special attention of adults ina child care setting.

(2) Children ages 3 to 21 years, inclusive, who have beendetermined to be eligible for special education and related servicesby an individualized education program team according to thespecial education requirements contained in Part 30 (commencingwith Section 56000) of Division 4 of Title 2, and who meeteligibility criteria described in Section 56026 and Sections 56333to 56338, inclusive, Article 2.5 (commencing with Section 56333)of Chapter 4 of Part 30 of Division 4 of Title 2, and Sections 3030and 3031 of Title 5 of the California Code of Regulations. Thesechildren shall have an active individualized education program,shall be receiving early intervention services or appropriate special

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education and related services, and shall be children who requirethe special attention of adults in a child care setting. These childreninclude children with mental retardation, hearing impairments(including deafness), speech or language impairments, visualimpairments (including blindness), serious emotional disturbance(also referred to as emotional disturbance), orthopedic impairments,

autism, traumatic brain injury, other health impairments, or specifclearning disabilities, who need special education and relatedservices consistent with Section 1401(3)(A) of Title 20 of theUnited States Code.

(m) Closedown costsmeans reimbursements for all approvedactivities associated with the closing of operations at the end ofeach growing season for migrant child development programsonly.

(n) Cost includes, but is not limited to, expenditures that arerelated to the operation of child care and development programs.Cost may include a reasonable amount for state and localcontributions to employee benefts, including approved retirement

programs, agency administration, and any other reasonable programoperational costs. Cost may also include amounts for licensablefacilities in the community served by the program, including leasepayments or depreciation, downpayments, and payments ofprincipal and interest on loans incurred to acquire, rehabilitate, orconstruct licensable facilities, but these costs shall not exceed fairmarket rents existing in the community in which the facility islocated. Reasonable and necessary costs are costs that, in natureand amount, do not exceed what an ordinary prudent person wouldincur in the conduct of a competitive business.

(o) Elementary school, as contained in formerSection 425 ofTitle 20 of the United States Code (the National Defense EducationAct of 1958, Public Law 85-864, as amended), includes earlychildhood education programs and all child development programs,for the purpose of the cancellation provisions of loans to studentsin institutions of higher learning.

(p) Family child care home education networkmeans an entityorganized under law that contracts with the department pursuantto Section 8245 to make payments to licensed family child carehome providers and to provide educational and support servicesto those providers and to children and families eligible forstate-subsidized child care and development services. A family

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child care home education network may also be referred to as afamily child care home system.

(q) Health services include, but are not limited to, all of thefollowing:

(1) Referral, whenever possible, to appropriate health careproviders able to provide continuity of medical care.

(2) Health screening and health treatment, including a full rangeof immunization recorded on the appropriate state immunizationform to the extent provided by the Medi-Cal Act (Chapter 7(commencing with Section 14000) of Part 3 of Division 9 of theWelfare and Institutions Code) and the Child Health and DisabilityPrevention Program (Article 6 (commencing with Section 124025)of Chapter 3 of Part 2 of Division 106 of the Health and SafetyCode), but only to the extent that ongoing care cannot be obtainedutilizing community resources.

(3) Health education and training for children, parents, staff,and providers.

(4) Followup treatment through referral to appropriate health

care agencies or individual health care professionals.(r) Higher educational institutions means the Regents of the

University of California, the Trustees of the California StateUniversity, the Board of Governors of the California CommunityColleges, and the governing bodies of any accredited privatenonproft institution of postsecondary education.

(s) Intergenerational staff means persons of variousgenerations.

(t) Limited-English-speaking-profcient andnon-English-speaking-profcient children means children whoare unable to beneft fully from an English-only child care anddevelopment program as a result of either of the following:

(1) Having used a language other than English when they frstbegan to speak.

(2) Having a language other than English predominantly orexclusively spoken at home.

(u) Parent means a biological parent, stepparent, adoptiveparent, foster parent, caretaker relative, or any other adult livingwith a child who has responsibility for the care and welfare of thechild.

(v) Program directormeans a person who, pursuant to Sections8244 and 8360.1, is qualifed to serve as a program director.

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(w) Proprietary child care agency means an organization orfacility providing child care, which is operated for proft.

(x) Resource and referral programs means programs thatprovide information to parents, including referrals and coordinationof community resources for parents and public or private providersof care. Services frequently include, but are not limited to: technical

assistance for providers, toy-lending libraries, equipment-lendinglibraries, toy- and equipment-lending libraries, staff developmentprograms, health and nutrition education, and referrals to socialservices.

(y) Severely disabled children are children with exceptionalneeds from birth to 21 years of age, inclusive, who require intensiveinstruction and training in programs serving pupils with thefollowing profound disabilities: autism, blindness, deafness, severeorthopedic impairments, serious emotional disturbances, or severemental retardation. Severely disabled children also include thoseindividuals who would have been eligible for enrollment in adevelopmental center for handicapped pupils under Chapter 6

(commencing with Section 56800) of Part 30 of Division 4 of Title2 as it read on January 1, 1980.

(z) Short-term respite child care means child care service toassist families whose children have been identifed through writtenreferral from a legal, medical, or social service agency, oremergency shelter as being neglected, abused, exploited, orhomeless, or at risk of being neglected, abused, exploited, orhomeless. Child care is provided for less than 24 hours per day inchild care centers, treatment centers for abusive parents, familychild care homes, or in the childs own home.

(aa) (1) Site supervisor means a person who, regardless ofhis or her title, has operational program responsibility for a childcare and development program at a single site. A site supervisorshall hold a permit issued by the Commission on TeacherCredentialing that authorizes supervision of a child care anddevelopment program operating in a single site. The Superintendentmay waive the requirements of this subdivision if theSuperintendent determines that the existence of compelling needis appropriately documented.

(2) For California state preschool programs, a site supervisormay qualify under any of the provisions in this subdivision, ormay qualify by holding an administrative credential or an

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administrative services credential. A person who meets thequalifcations of a site supervisor program director under bothSection Sections 8244 and subdivision (e) of Section 8360.1 isalso qualifed under this subdivision.

(ab) Standard reimbursement ratemeans that rate establishedby the Superintendent pursuant to Section 8265.

(ac) Startup costs means those expenses an agency incurs inthe process of opening a new or additional facility prior to the fullenrollment of children.

(ad) California state preschool program means part-day andfull-day educational programs for low-income or otherwisedisadvantaged three- and four-year-old children.

(ae) Support services means those services that, whencombined with child care and development services, help promotethe healthy physical, mental, social, and emotional growth ofchildren. Support services include, but are not limited to: protectiveservices, parent training, provider and staff training, transportation,parent and child counseling, child development resource and

referral services, and child placement counseling.(af) Teachermeans a person with the appropriate permit issued

by the Commission on Teacher Credentialing who providesprogram supervision and instruction that includes supervision ofa number of aides, volunteers, and groups of children.

(ag) Underserved area means a county or subcounty area,including, but not limited to, school districts, census tracts, or ZIPCode areas, where the ratio of publicly subsidized child care anddevelopment program services to the need for these services islow, as determined by the Superintendent.

(ah) Workday means the time that the parent requirestemporary care for a child for any of the following reasons:

(1) To undertake training in preparation for a job.(2) To undertake or retain a job.(3) To undertake other activities that are essential to maintaining

or improving the social and economic function of the family, arebenefcial to the community, or are required because of healthproblems in the family.

(ai) Three-year-old children means children who will havetheir third birthday on or before December 2 of the fscal year inwhich they are enrolled in a California state preschool program.

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(aj) Four-year-old children means children who will havetheir fourth birthday on or before December 2 of the fscal year inwhich they are enrolled in a California state preschool program.

(ak) Local educational agency means a school district, acounty offce of education, a community college district, or aschool district on behalf of one or more schools within the school

district.(al) Nontraditional hours means that the parent or legal

guardian has a certifed need for child care that includes hoursduring the period from 6:00 p.m. to 6:00 a.m. on any day of theweek or during any period between 6:00 a.m. Saturday to 6:00a.m. Monday.


8263.1. For (a) Forpurposes of this chapter, income eligiblemeans that a familys adjusted monthly income is at or below 7570 percent of the state median income, adjusted for family size,and adjusted annually. The

(b) Notwithstanding any other law, for the 201112 fscal year,the income eligibility limits that were in effect for the 200708fscal year shall be reduced to 70 percent of the state medianincome that was in use for the 200708 fscal year, adjusted forfamily size, effective July 1, 2011.

(c) The income of a recipient of federal supplemental securityincome benefts pursuant to Title XVI of the Federal federal SocialSecurity Act (42 U.S.C. Sec. 1381 et seq.) and state supplementalprogram benefts pursuant to Title XVI of the Federal federalSocial Security Act and Chapter 3 (commencing with Section12000) of Part 3 of Division 9 of the Welfare and Institutions Codeshall not be included as income for the purposes of determiningeligibility for child care under this chapter.

SEC. 7. Section 8263.2 is added to the Education Code, toread:

8263.2. (a) Notwithstanding any other provision of law,effective July 1, 2011, the department shall reduce the maximumreimbursable amounts of the contracts for the Preschool EducationProgram, the General Child Care Program, the Migrant Day CareProgram, the Alternative Payment Program, the CalWORKs Stage3 Program, and the Allowance for Handicapped Program by 15percent. The department may consider the contractors

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performance or whether the contractor serves children inunderserved areas as defned in subdivision (ag) of Section 8208when determining contract reductions, provided that the aggregatereduction to each program specifed in this subdivision is 15percent.

(b) Notwithstanding any other provision of law, effective July

1, 2011, families shall be disenrolled from subsidized child careservices, consistent with the priorities for services specifed insubdivision (b) of Section 8263. Families shall be disenrolled inthe following order:

(1) Families whose income exceeds 70 percent of the statemedian income (SMI) adjusted for family size, except for familieswhose children are receiving child protective services or are atrisk of being neglected or abused.

(2) Families with the highest income below 70 percent of theSMI, in relation to family size.

(3) Families that have the same income and have been enrolledin child care services the longest.

(4) Families that have the same income and have a child withexceptional needs.

(5) Families whose children are receiving child protectiveservices or are at risk of being neglected or abused, regardless offamily income.


8263.4. (a) The preferred placement for children Beginningon July 1, 2011, a childwho are is 11 or 12 years of age and whoare is otherwise eligible for subsidized child care and developmentservices except for his or her age, as specifed in subdivision (a)of Section 8201 and subdivision (i) of Section 8208, shall be ingiven frst priority for enrollment, and in cases of programsoperating at full capacity, frst priority on the waiting list for abefore or after school program established pursuant to Article 22.5(commencing with Section 8482) or Article 22.6 (commencing withSection 8484.7). Contractors shall provide each family of anotherwise eligible 11 or 12 year old with information about theavailability of before and after school programs located in thefamilys community.

(b) Children who are 11 or 12 years of age shall be eligible forsubsidized child care services only for the portion of care needed

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that is not available in a before or after school program providedpursuant to Article 22.5 (commencing with Section 8482) ofChapter 2 or Article 22.6 (commencing with Section 8484.7) ofChapter 2. Contractors shall provide each family of an eligible 11or 12 year old with the option of combining care provided in abefore or after school program with subsidized child care in another

setting, for those hours within a day when the before or after schoolprogram does not operate, in order to meet the child care needs ofthe family.

(c) Children who are 11 or 12 years of age, who are eligible forand who are receiving subsidized child care services, and for whoma before or after school program is not available, shall continue toreceive subsidized child care services.

(d) A before or after school program shall be considered notavailable when a parent certifes in writing, on a form providedby the State Department of Education that is translated into theparents primary language pursuant to Sections 7295.4 and 7296.2of the Government Code, the reason or reasons why the program

would not meet the child care needs of the family. The reasonswhy a before or after school program shall be considered notavailable shall include, but not be limited to, any of the following:

(1) The program does not provide services when needed duringthe year, such as during the summer, school breaks, or intersession.

(2) The program does not provide services when needed duringthe day, such as in the early morning, evening, or weekend hours.

(3) The program is too geographically distant from the childsschool of attendance.

(4) The program is too geographically distant from the parentsresidence.

(5) Use of the program would create substantial transportationobstacles for the family.

(6) Any other reason that makes the use of before or after schoolcare inappropriate for the child or burdensome on the family.

(e) If an 11 or 12 year old child who is enrolled in a subsidizedchild development program becomes ineligible for subsidized childcare under subdivision (b) and is disenrolled from the before orafter school program, or if the before or after school program nolonger meets the child care needs of the family, the child shall begiven priority to return to the subsidized child care services uponthe parents notifcation of the contractor of the need for child care.

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(f) This section does not apply to an 11 or 12 year old child witha disability, including a child with exceptional needs who has anindividual education plan as required by the Individuals withDisabilities Education Act (20 U.S.C. Sec. 1400), Section 504 ofthe Rehabilitation Act of 1973 (29 U.S.C. Sec. 794), or Part 30(commencing with Section 56000) of this code.

(g) The savings generated each contract year by theimplementation of the changes made to this section by the actamending this section during the 2005 portion of the 2005-06Regular Session shall remain with each alternative paymentprogram, child development center, or other contractor for theprovision of child care services, except for care provided byprograms pursuant to Article 15.5 (commencing with Section8350). Each contractor shall report annually to the department theamount of savings resulting from this implementation, and thedepartment shall report annually to the Legislature the amount ofsavings statewide resulting from that implementation.

(b) A program with available capacity may enroll a child who

is 11 or 12 years of age pursuant to subdivision (a) and residesoutside the attendance area of the school, but within the territorialjurisdiction of the same local educational agency. A program isnot responsible for providing transportation for children enrolledin the program who resides outside the attendance area of theschool.

(c) This section does not apply to an 11 or 12 year old childwho is a recipient of child protective services or at risk of abuse,neglect, or exploitation as described in subparagraph (D) ofparagraph (1) of subdivision (a) of Section 8263 and as defnedin subdivision (k) of Section 8208, a child 12 years of age oryounger who is provided services during nontraditional hours asdefned in subdivision (al) of Section 8208, children 12 years ofage or younger who are homeless as described in subparagraph(C) of paragraph (1) of subdivision (a) of Section 8263, or an 11or 12 year old child with a disability, including a child withexceptional needs who has an individualized education programas required by the federal Individuals with Disabilities EducationAct (20 U.S.C. Sec. 1400 et seq.), Section 504 of the federalRehabilitation Act of 1973 (29 U.S.C. Sec. 794), or Part 30(commencing with Section 56000) of Division 4 of Title 2.

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8354. (a) The third stage of child care begins when a fundedspace is available. CalWORKs recipients are eligible for the thirdstage of child care. Persons who received a lump-sum diversionpayment or diversion services and former CalWORKs participants

are eligible if they have an income that does not exceed 75 70percent of the state median income pursuant to Section 8263.1.The third stage shall be administered by programs contracting withthe State Department of Education. Parents eligibility for childcare and development services will be governed by Section 8263and regulations adopted by the State Department of Education.

(b) In order to move welfare recipients and former recipientsfrom their relationship with county welfare departments torelationships with institutions providing services to workingfamilies, it is the intent of the Legislature that families that areformer recipients of aid, or are transitioning off aid, receive theirchild care assistance in the same fashion as other low-income

working families. Therefore, it is the intent of the Legislature thatfamilies no longer rely on county welfare departments to obtainchild care subsidies beyond the time they are receiving otherservices from the welfare department.

(c) A county welfare department shall not administer the thirdstage of child care for CalWORKs recipients except to the extentto which it delivered those services to families receiving, or withinone year of having received, Aid to Families with DependentChildren prior to the enactment of this section.

(d) This article does not preclude county welfare departmentsfrom operating an alternative payment program under contractwith the State Department of Education to serve families referredby child protective services.


8357. (a) The cost of child care services provided under thisarticle shall be governed by regional market rates. Recipients ofchild care services provided pursuant to this article shall be allowedto choose the child care services of licensed child care providersor child care providers who are, by law, not required to be licensed,and the cost of that child care shall be reimbursed by counties oragencies that contract with the State Department of Education if

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the cost is within the regional market rate. For purposes of thissection, regional market rate means care costing no more than1.5 market standard deviations above the mean cost of care forthat region. The regional market rate ceilings shall be establishedat the 85th percentile of the 2005 regional market rate survey forthat region.

(b) Reimbursement to license-exempt child care providers shallnot exceed 80 60 percent of the family child care home rateestablished pursuant to subdivision (a), effective July 1, 2011.

(c) Reimbursement to child care providers shall not exceed thefee charged to private clients for the same service.

(d) Reimbursement shall not be made for child care serviceswhen care is provided by parents, legal guardians, or members ofthe assistance unit.

(e) A child care provider located on an Indian reservation orrancheria and exempted from state licensing requirements shallmeet applicable tribal standards.

(f) For purposes of this section, reimbursementmeans a direct

payment to the provider of child care services, includinglicense-exempt providers. If care is provided in the home of therecipient, payment may be made to the parent as the employer,and the parent shall be informed of his or her concomitant legaland fnancial reporting requirements. To allow time for thedevelopment of the administrative systems necessary to issue directpayments to providers, for a period not to exceed six months fromthe effective date of this article, a county or an alternative paymentagency contracting with the State Department of Education mayreimburse the cost of child care services through a direct paymentto a recipient of aid rather than to the child care provider.

(g) Counties and alternative payment programs shall not bebound by the rate limits described in subdivision (a) when thereare, in the region, no more than two child care providers of thetype needed by the recipient of child care services provided underthis article.

(h) Notwithstanding any other provision of law, reimbursementsto child care providers based upon a daily rate may only beauthorized under either of the following circumstances:

(1) A family has an unscheduled but documented need of sixhours or more per occurrence, such as the parents need to work

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on a regularly scheduled day off, that exceeds the certifed needfor child care.

(2) A family has a documented need of six hours or more perday that exceeds no more than 14 days per month. In no event shallreimbursements to a provider based on the daily rate over onemonths time exceed the providers equivalent full-time monthly

rate or applicable monthly ceiling.(3) This subdivision shall not limit providers from being

reimbursed for services using a weekly or monthly rate, pursuantto subdivision (c) of Section 8222.


8447. (a) The Legislature herebyfnds and declares that greatereffciencies may be achieved in the execution of state subsidizedchild care and development program contracts with public andprivate agencies by the timely approval of contract provisions bythe Department of Finance, the Department of General Services,and the State Department of Education and by authorizing the State

Department of Education to establish a multiyear application,contract expenditure, and service review as may be necessary toprovide timely service while preserving audit and oversightfunctions to protect the public welfare.

(b) (1) The Department of Finance and the Department ofGeneral Services shall approve or disapprove annual contractfunding terms and conditions, including both family fee schedulesand regional market rate schedules that are required to be adheredto by contract, and contract face sheets submitted by the StateDepartment of Education not more than 30 working days from thedate of submission, unless unresolved conicts remain betweenthe Department of Finance, the State Department of Education,and the Department of General Services. The State Department ofEducation shall resolve conicts within an additional 30 workingday time period. Contracts and funding terms and conditions shallbe issued to child care contractors no later than June 1. Applicationsfor new child care funding shall be issued not more than 45working days after the effective date of authorized new allocationsof child care moneys.

(2) Notwithstanding paragraph (1), the State Department ofEducation shall implement the regional market rate schedules

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based upon the county aggregates, as determined by the RegionalMarket survey conducted in 2005.

(3) Notwithstanding paragraph (1), for the 200607 fscal year,the State Department of Education shall update the family feeschedules by family size, based on the 2005 state median incomesurvey data for a family of four. The family fee schedule used

during the 200506 fscal year shall remain in effect. However,the department shall adjust the family fee schedule for familiesthat are newly eligible to receive or will continue to receive servicesunder the new income eligibility limits. The family fees shall notexceed 10 percent of the familys monthly income.

(4) Notwithstanding any other law, the family fee schedule thatwas in effect for the 200708, 200809, 200910, and 201011fscal years shall be adjusted to reect the income eligibility limitsspecifed in subdivision (b) of Section 8263.1 for the 201112 fscalyear, and shall retain a at fee per family. The revised family feeschedule shall begin at income levels at which families currentlybegin paying fees, and shall reect an increase of 10 percent to

existing fees. The revised family fees shall not exceed 10 percentof the familys monthly income. The State Department of Educationshall frst submit the adjusted fee schedule to the Department ofFinance for approval in order to be implemented by July 1, 2011.

(4)(5) It is the intent of the Legislature to fully fund the third stage

of child care for former CalWORKs recipients.(c) With respect to subdivision (b), it is the intent of the

Legislature that the Department of Finance annually reviewcontract funding terms and conditions for the primary purpose ofensuring consistency between child care contracts and the childcare budget. This review, shall include evaluating any proposedchanges to contract language or other fscal documents to whichthe contractor is required to adhere, including those changes toterms or conditions that authorize higher reimbursement rates, thatmodify related adjustment factors, that modify administrative orother service allowances, or that diminish fee revenues otherwiseavailable for services, to determine if the change is necessary orhas the potential effect of reducing the number of full-timeequivalent children that may be served.

(d) Alternative payment child care systems, as set forth in Article3 (commencing with Section 8220), shall be subject to the rates

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established in the Regional Market Rate Survey of California ChildCare Providers for provider payments. The State Department ofEducation shall contract to conduct and complete a RegionalMarket Rate Survey no more frequently than once every two years,consistent with federal regulations, with a goal of completion byMarch 1.

(e) By March 1 of each year, the Department of Finance shallprovide to the State Department of Education the State MedianIncome amount for a four-person household in California basedon the best available data. The State Department of Education shalladjust its fee schedule for child care providers to reect thisupdated state median income; however, no changes based onrevisions to the state median income amount shall be implementedmidyear.

(f) Notwithstanding the June 1 date specifed in subdivision (b),changes to the regional market rate schedules and fee schedulesmay be made at any other time to reect the availability of accuratedata necessary for their completion, provided these documents

receive the approval of the Department of Finance. The Departmentof Finance shall review the changes within 30 working days ofsubmission and the State Department of Education shall resolveconicts within an additional 30 working day period. Contractorsshall be given adequate notice prior to the effective date of theapproved schedules. It is the intent of the Legislature that contractsfor services not be delayed by the timing of the availability ofaccurate data needed to update these schedules.

(g) Notwithstanding any other provision of law, no familyreceiving CalWORKs cash aid may be charged a family fee.

(h) Notwithstanding any other law, effective July 1, 2011, theState Department of Education shall amend CalWORKs Stage 2and Stage 3, general child care, migrant child care, and alternativepayment contracts to reect the lower priority for providingsubsidized child care and development services for 11 and 12 yearolds, except for 11 and 12 year olds who are eligible pursuant tosubparagraphs (C) and (D) of paragraph (1) of subdivision (a) ofSection 8263, children with exceptional needs as defned insubdivision (l) of Section 8208, and children who are served duringnontraditional hours as defned in subdivision (al) of Section 8208.The State Department of Education shall include language in allcontracts stating that funds are not to be expended providing

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services to 11 and 12 year olds, with the exceptions noted above,until such time as the department determines and notifescontractors that funding for providing those services is available.The State Department of Education shall submit a request andreceive prior approval from the Department of Finance beforeexpending funds to serve low priority 11 and 12 year olds.


8499. For purposes of this chapter, the following defnitionsshall apply:

(a) Block grant means the block grant contained in Title VIof the Child Care and Development Fund, as established by thePersonal Responsibility and Work Opportunity Reconciliation Actof 1996 (P.L. 104-193).

(b) Child caremeans all licensed child care and developmentservices and license-exempt child care, including, but not limitedto, private for-proft programs, nonproft programs, and publiclyfunded programs, for all children up to and including 12 years of

age, including children with exceptional needs and children fromall linguistic and cultural backgrounds, pursuant to subdivision(a) of Section 8201 and subdivision (i) of Section 8208.

(c) Child care provider means a person who provides childcare services or represents persons who provide child care services.

(d) Community representativemeans a person who representsan agency or business that provides private funding for child careservices, or who advocates for child care services throughparticipation in civic or community-based organizations but is nota child care provider and does not represent an agency thatcontracts with the State Department of Education to provide childcare and development services.

(e) Consumermeans a parent or person who receives, or whohas received within the past 36 months, child care services.

(f) Department means the State Department of Education.(g) Local planning council means a local child care and

development planning council as described in Section 8499.3.(h) Public agency representative means a person who

represents a city, county, city and county, or local educationalagency.

SEC. 13. Section 14041.5 of the Education Code is amendedto read:

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14041.5. (a) Notwithstanding subdivision (a) of Section 14041,commencing with the 200203 fscal year, warrants for theprincipal apportionments for the month of June instead shall bedrawn in July of the same calendar year pursuant to the certifcationmade pursuant to Section 41335.

(b) Except as provided in subdivisions (c) and (d), for purposes

of making the computations required by Section 8 of Article XVIof the California Constitution, the warrants drawn pursuant tosubdivision (a) shall be deemed to be General Fund revenuesappropriated to school districts, as defned in subdivision (c) ofSection 41202 for the fscal year in which the warrants are drawnand included within the total allocations to school districts andcommunity college districts from General Fund proceeds of taxesappropriated pursuant to Article XIIIB as defned in subdivision(e) of Section 41202, for the fscal year in which the warrants aredrawn.

(c) For the 200304 school year, the amount of apportionmentsfor revenue limits computed pursuant to Section 42238 from any

of the apportionments made pursuant to Section 14041 that aredeemed General Fund revenues appropriated for school districts,as defned in subdivision (c) of Section 41202 for the followingfscal year and included within the total allocations to schooldistricts and community college districts from General Fundproceeds of taxes appropriated pursuant to Article XIII B asdefned in subdivision (e) of Section 41202, for the 200405 fscalyear shall be seven hundred twenty-six million two hundredseventy thousand dollars ($726,270,000). Any amount in excessof seven hundred twenty-six million two hundred seventy thousanddollars ($726,270,000) that is apportioned in July of 2004 isdeemed General Fund revenues appropriated for school districts,as defned in subdivision (c) of Section 41202 for the 200304fscal year and included within the total allocations to schooldistricts and community college districts from General Fundproceeds of taxes appropriated pursuant to Article XIII B asdefned in subdivision (e) of Section 41202, for the 200304 fscalyear.

(d) For the 200405 school year to the 200708 school year,inclusive, the amount of apportionments for revenue limitscomputed pursuant to Section 42238 from any of theapportionments made pursuant to Section 14041 that are deemed

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General Fund revenues appropriated for school districts, asdefned in subdivision (c) of Section 41202 for the following fscalyear and included within the total allocations to school districtsand community college districts from General Fund proceeds oftaxes appropriated pursuant to Article XIII B as defned insubdivision (e) of Section 41202, for the following fscal year shall

be seven hundred ffteen million one hundred eighteen thousanddollars ($715,118,000). Any amount in excess of seven hundredffteen million one hundred eighteen thousand dollars($715,118,000) that is apportioned in July of any year is deemedGeneral Fund revenues appropriated for school districts, asdefned in subdivision (c) of Section 41202 for the prior fscal yearand included within the total allocations to school districts andcommunity college districts from General Fund proceeds of taxesappropriated pursuant to Article XIIIB as defned in subdivision(e) of Section 41202, for the prior fscal year.

(e) For the 200809 school year, and each school year thereafter,the amount of apportionments for revenue limits computed pursuant

to Section 42238 from any of the apportionments made pursuantto Section 14041 that are deemed General Fund revenuesappropr

Documents

sb_70_Education Finance_budget act of 2011