Proposition 98

• Introduction: Proposition 98
• Background
• Governor’s Budget Proposal
• Compared to Current Year
• Compared to Minimum Guarantee
• Compared to Workload Budget
• Effect of Reductions on K–14 Education
• Additional One–Time Funds for K–14 Education
• Outline
• Proposition 98 Priorities
• Alternative Takes Different Approach to Building Proposition 98 Budget
• Alternative Achieves More Than $200 Million in Program Savings
• Alternative Taps Other K–14 Savings
• Alternative Includes Major Categorical Reform Component
• Various Factors Affect Minimum Guarantee in Budget Year
• Conclusion
• Proposition 98 Technical Update
• Proposition 98 Forecasts
• Prior Year
• Current Year
• Budget Year
• Suspending Proposition 98
• Local Property Tax Revenue
• Other Proposition 98 Funding Issues
• Proposition 98 Settle–Up Obligations
• Chapter 751
• Mandates
• Deferrals
• Deficit Factor
• Maintenance Factor
• COLA
• Current COLA Index Not a Good Measure of Typical School Cost Pressures
• Governor’s Proposed COLA Not Based on Employer Costs
• Modify Current COLA Index to Better Reflect School Costs
• Comparing K–12 COLA Options Over Time
• Conclusion
• If Legislature Creates a Deficit Factor in 2008–09, Budget–Year COLA Rate Would Have Out–Year Fiscal Effect

K-12 Education

• Introduction: K-12 Education
• Overview of K–12 Education Funding
• Governor’s K–12 Proposition 98 Proposal
• Proposition 98 Spending by Major Program
• Enrollment Trends
• Per–Pupil Funding
• Calculating PPF
• Comparing PPF Across States
• Comparing PPF in California Over Time
• K–12 Categorical Reform
• Reform Would Help Districts and Schools
• Some Categorical Programs May Be Necessary
• Many Options for Improving System
• Pupil–Weighted Formula
• Block Grants
• Program Clusters
• Simplify State Funding System
• Create a New Base Grant
• Consolidate Special Education Funding
• An Opportunity to Learn Grant
• An Expanded School Improvement Grant
• Conclusion
• Child Care and Development
• Child Care and Development Programs
• Child Care and Development Programs
• Support Activities and Services
• Types of Non–CalWORKs Child Care
• Two Types of Service Models
• State Median Income (SMI) Impacts Families and Providers
• State Needs to Address Underlying Budget Problem
• Special Education
• Governor’s Proposal Violates Federal Maintenance–of–Effort Requirement
• Federal Waiver Possible but Unlikely
• Adult Education
• Align Funding With Population Growth
• After School Programs
• After School Programs Available Kindergarten Through High School
• The ASES Program Serves Elementary and Middle School Students
• The 21st Century Program Primarily Serves High School Students
• Open Issues Remain for ASES
• Expand Governor’s Reform Proposal and Eliminate Autopilot Spending
• K–12 Mandates
• Mandate Funding Is Part of the Base
• Commission Approves Two New Mandates
• CSM Decision Misses Offsetting Savings
• Develop “Unit Costs” for New Mandates
• Are Stull Act Evaluations Worth the Money?
• Federal Funds
• The CDE Currently Tracks Numerous Pots of Federal Funds
• Two Annual Reports Could Improve Budget Process
• School Facilities
• School Facilities Program
• Strategic Growth Plan
• Concerns With Governor’s Plan
• Virtually Impossible to Assess Statewide Need For Additional Bonds
• Different Approach Needed for Financial Hardship Program
• Charter School Facilities
• Grant Programs for Charter School Facilities
• Bond Programs for Charter School Facilities
• Charter Schools Face Many Roadblocks to Constructing Facilities
• Governor’s Charter School Proposals Moving in Right Direction
• Further Improvements Could Be Made for Funding Charter School Facilities
• California State Teachers’ Retirement System (1920)
• System’s Funded Status Improved in Most Recent Valuation
• Proposal to Delay Court–Ordered Interest Payment Is Risky
• Recommend That Legislature Again Reject Plan to Guarantee Teacher Benefit
• Recommend Applying Commission’s Independent Performance Audit Recommendation to CalSTRS
• Other Issues
• Eliminate Physical Education Teacher Incentive Grants
• Eliminate Duplicative School Safety Grants
• Phase Out Year Round Schools Grant Program
• Reduce STAR Testing
• Use Federal Funds for CalPADS

Higher Education

• Introduction: Higher Education
• Total Higher Education Budget Proposal
• Major Funding Changes by Segment
• Enrollment
• Student Fee
• Financial Aid
• Capital Outlay
• Intersegmental: Governor’s Budget Solutions
• Two Perspectives on the Budget Solutions
• UC and CSU
• CCC
• UC and CSU Budgets Start With Compact
• CSAC
• LAO Assessment
• Intersegmental: LAO Alternative Budget Proposal
• Accommodating Enrollment Growth
• Recent Enrollment Trends
• Governor’s Proposal Would Not Ensure Growth Is Accommodated
• Fund Enrollment Growth to Accommodate Projected Increase
• Adjustments to Base Budget
• Responding to Price Increases
• Reduce Funding for Administrative Costs
• Maintaining Affordability for Students
• Student Fees Contribute Toward Education Costs
• LAO Findings and Reccomendations on Student Fees
• Governor’s Budget Envisions Unspecified Fee Increases for University Students
• Recommend Specific, Moderate Fee Increases
• Recommend Corresponding Increases to Financial Aid
• Conclusion
• Intersegmental: Addressing the Local Impacts of Campus Growth
• Campus Planning and the Environmental Review Process
• Environmental Impact Report (EIR) Required for Each Campus Plan
• CEQA’s Mitigation Requirements
• What Is a Significant and Unavoidable Impact?
• The Marina v. CSU Board of Trustees Decision
• Implications of the Marina Decision
• How Does the Marina Decision Affect CSU?
• What Is a Fair Share?
• How Does the Marina Decision Affect the Other Higher Education Segments?
• How Does the Marina Decision Affect Other State–Funded Projects?
• Policy Issues
• Assessing the Need for Enrollment Growth
• Both Demographic Changes and Policy Choices Affect Enrollment Growth
• Accommodating Growth with Existing Resources
• Clarifying Legal Issues Concerning CEQA and Campus Plans
• What Is an Appropriate Arrangement for a Fair–Share Payment?
• How Should the Legislature Respond to CSU’s Off–Site Mitigation Policy?
• How Should CCC and K–12 Practices Relate to CEQA?
• Appropriating Mitigation Funding
• What Is the Appropriate Payment Source?
• When Should Mitigation Costs Be Identified?
• When Should Payments Be Made?
• Conclusion
• University of California (6440)
• General Fund Proposals
• Student Fee Increases
• Intersegmental Issues Involving UC
• Transportation Research Initiative
• Capital Outlay
• Implementation of Proposition 1D
• The Governor’s 2008–09 Proposal
• Use Remaining Bond Funds to Finish Existing Projects
• Authorized Amount of the 2008 Bond Should Match State’s Commitments
• Four Projects Initiated Without Legislature’s Review and Approval
• California State University (6610)
• General Fund Proposals
• Student Fee Increases
• Intersegmental issues involving CSU
• CSU Capital Outlay
• Implementation of Proposition 1D
• The Governor’s 2008–09 Proposal
• Use Remaining Bond Funds to Finish High–Priority Projects
• Authorized Amount of the 2008 Bond Should Match State’s Commitments
• Sacramento: Science II, Phase 2
• Chico: Taylor II Replacement Building
• California Community Colleges (6870)
• CCC Budget Overview
• Major Budget Changes
• Proposition 98 Spending by Major Program
• Student Fees
• Overview of CCC Alternative Budget
• Enrollment Levels and Funding
• Recent Trends
• 2008–09 Enrollment Growth Funding
• Enrollment Restoration
• California Community Colleges’ Budget Starts With Workload Estimate
• Student Fees
• Fee Decisions Affect College Funding, Student Choices, and Outcomes
• Recommend Restoration of 2006 Fee Level
• Community College Categorical Programs
• Proposed Budget–Year Cuts to CCC Categorical Programs
• Recommend Reducing Support for Economic Development Program
• Categorical Reform
• Recommend Consolidating Categoricals Into Block Grants
• Other Issues
• CCC Chancellor’s Office
• CCC Capital Outlay
• Implementation of Proposition 1D
• 2008 Bond Proposal
• CCC Chancellor’s Office Oversight of Capital Outlay Projects
• California Student Aid Commission (7980)
• Budget Proposals
• Cal Grant Programs
• Reduce Funding Based on Lower Recommended Fee Increases
• Recommend Retaining Competitive Program
• Planned EdFund Sale and Impact on Administrative Operations