1. State Budget and Legislative Update California Consortium for Independent Study (CCIS) Presented by: Barrett Snider, Partner - Capitol Advisors Group CCIS Legislative Advocate in Sacramento

2. Materials Online www.ccis.org

3. Topics Covered Recent IS changes Governor’s State Budget Proposal November Ballot: Prop 30 Extension November Ballot: School Bond Every Student Succeeds Act (ESSA) Friedrichs v. CTA Case – U.S. Supreme Court New Vaccination Law Guidance

4. Recent Changes to Independent Study 1.Permits written agreements to be maintained on file electronically 2.Provides that LEAs shall not be required to sign and date pupil work products when assessing the time value of pupil work products for apportionment purposes 3.Allows LEAs to enter into year-long master agreements

5. New “Course-based” Independent Study Creates a “course-based” Independent Study option, beginning in 2015-16, for pupils in Kindergarten through grade 12 o This is DIFFERENT from regular Independent Study o This has DIFFERENT requirements than Independent Study o There are lots of issues here – proceed with caution o CCIS did not advocate for “course-based” option, was an ask by Department of Finance

6. Part 2: New “Course-based” Independent Study It is an optional alternative to regular Independent Study May offer it commencing with the 2015-16 school year May be offered to students in Kindergarten to Grade 12 Includes school districts, county offices of education, and charter schools Strongly advise against using it – at least for now

7. CCIS - 2016 Advocacy Efforts Allow ALL documents currently required for auditing purposes to be accepted and maintained electronically Language is in the Governor’s Budget

8. State Budget Timeline January 10 – Governor proposes state budget May 15 – Governor revises proposal June 15 – Legislature must send budget bill to Governor (or forfeit pay for each day late) July 1 – Beginning of next fiscal year This does not mesh well with the school district budgeting time lines… Gov proposes $122 Billion state GF budget Stresses impending recession

9. State General Fund

10. Proposition 30 Extension Competing measures filed by CTA and health care groups Compromise between CTA and California Hospital Association, proposed for November 2016 All three measures still “live,” but the compromise is the one that will move forward What about Prop 30 champion, Gov. Jerry Brown? Interaction with November 2016 school facilities bond?

11. The California Children’s Education and Health Care Protection Act of 2016 Extends temporary tax rate increases for high-income earners through end of 2030, instead of end of 2018 No changes in rates or rate brackets Sales tax increase not extended – expires at end of 2016 Revenues continue to count as GF revenues for calculation of Prop 98 Guarantee Some funds go for healthcare services if DOF estimates sufficient GF revenues from all sources to (1) meet the Prop 98 Guarantee and (2) cover the non-98 “workload budget” 45% of the excess revenue, up to $2 billion, goes to healthcare Remaining 55% continues to go the K-14, but in practice frees up an equivalent amount of GF revenue for any purpose

12. Prop 98 vs. LCFF Prop 98 is California’s Constitutional minimum funding guarantee for K-14 schools Local Control Funding Formula (LCFF) is the new school finance model Prop 98 dictates the funding for schools, LCFF distributes those funds to schools LCFF does not “create” funding for schools

13. Prop 98 Over Time - Looking Back (Billions of Dollars)

14. Governor’s K-12 Proposal – Overview $71.6 billion for Prop 98 ($63.2 billion for K-12) $2.8 billion increase for LCFF (funding 49% of remaining implementation gap) $1.28 billion one-time discretionary funding (mandate claims offset) $500 million for Adult Education Block Grant (per 2015 Budget Act) $365 million for Prop 39 energy efficiency grants $300 million (one-time) for CTE incentive grants $61 million for charter school ADA growth plus $20 million (one- time) for charter school startup grants $30 million (one-time) for learning and behavior supports $22.9 million to provide COLAs to categorical programs outside of the LCFF -$15.5 million for Special Education ADA decrease

15. Stand Alone Categorial Programs Proposed for Ongoing Funding (no COLA) Adults in Correctional Facilities ($15.2 million) After School Education and Safety Program ($547 million) Child Nutrition – Breakfast Startup ($1 million) County Office Fiscal Oversight ($5.3 million) California School Information Services ($5.8 million) K-12 Internet Access ($108.3 million) State Testing Program ($110.4 million) California Partnership Academies ($21.4 million) Agricultural Education Incentive Program ($4.1 million) Specialized Secondary Programs ($4.9 million) Proposed for Ongoing Funding (includes.47% COLA) Special Education ($3.3 billion) Foster Youth Programs ($15.5 million) American Indian Education Centers ($4.1 million) American Indian Early Childhood Education Program ($553,000) Child Nutrition ($164.7 million) Targeted Play and Learning Block Grant ($1.65 billion, consolidates existing funding for State Preschool, TK, Quality Rating and Improvement System)

16. One-Time Discretionary Funding Proposes $1.28 billion (total $4.9 billion over 3 years) fully discretionary one-time funding to school districts, county offices, and charter schools Approximately $214 per ADA Funds received will directly offset any unreimbursed state mandate claims, but all LEAs receive funds regardless of mandate claims DOF estimates $1.6 billion left in mandate backlog

17. Charter Schools LCFF – Receive share of $2.8 billion based on entitlement target One-Time Discretionary Funding – $214 per ADA share of the $1.28 billion Projected ADA growth – $61 million increase Startup Grants – $20 million one-time funding for operational startup costs to backfill loss of federal funding

18. School Facilities There is currently only one school bond proposal – CASH/BIA measure is qualified for November 2016 ballot Governor continues to have concerns with extending the current school facilities program, but has not developed an alternative School bonds cost state General Fund $2 billion in annual debt service Current program is overly complex Allocates funding on first-come, first-served basis, giving priority to districts with dedicated facility staff Doesn’t address students with greatest need Key Legislative staff have expressed concerns with a November 2016 ballot measure, but have not developed an alternative and face steep hurdles Need Republican votes to reach two-thirds threshold Democrats not necessarily united – “unfunded” list

19. Early Education Block Grant $1.65 billion for new block grant that consolidates 3 programs State Preschool Program (currently $885 million) Transitional Kindergarten ($725 million) Preschool Quality Rating & Improvement System ($50 million) Objectives: Financial flexibility with priority for lowest-income and at-risk 4 and 5 year olds Distribution factors include local demographics & financial need LEA discretion to implement programs based on local priorities Streamline administrative processes Integrate accountability with LCAP Hold harmless ensures each LEA receives minimum of what it would have received from the individual programs Details in May Revision after stakeholder process

20. November 2016 School Bond $9 billion bond $ 2 billion Community Colleges $ 7 billion K-12 $3 billion New Construction $3 billion Modernization $500 million Charters $500 million CTE Continues current School Facilities Program (SFP) in place on January 1, 2015 (all $2 billion of submitted projects in the pipeline would get funded)

21. Every Student Succeeds Act Congress and the President enacted the Act to replace the ESEA (No Child Left Behind Act, 2001) In general, the ESSA rolls back the federal footprint in K- 12 accountability, school interventions, and teacher evaluations Heavy emphasis on serving student subgroups California and the U.S. Dept of Education will develop ESSA regulations Timeline Aug. 2016: Waivers expire 2016–17: Federal and state regulations developed 2017–18: Full implementation Reauthorization in four years (or maybe 14 years)

22. Every Student Succeeds Act Accountability CA currently developing new accountability system (evaluation rubrics, etc.) and ESSA allows flexibility to utilize system based on annual assessments, ELL progress, HS graduation rates, etc. Intervention States to intervene in bottom 5% of schools based on test scores and graduation rates, or where subgroups are consistently underperforming Testing Maintains current testing levels, but gives more state flexibility on administration Teacher evaluations Permitted but not required by ESSA English language learners More subgroup tracking/data; English language proficiency moved from Title III to I (idea is to increase state accountability for these students)

23. Lawsuits Friedrichs v. CTA Challenge to California “agency fee” system – does it violate the free speech rights of non-union members? May impact relative power of public-sector unions; pre- emptive action by Legislature rumored Vergara v. California Challenge to constitutionality of teacher tenure, dismissal and layoff statutes – tied up in courts, but could lead to calls for legislative reform Robles-Wong v. California Does the state’s school finance system provide “adequate” funding to ensure California students their right to an education of the quality guaranteed by the Constitution?

24. SB 277 (Pan/Allen) Eliminates the personal belief exemption from the vaccine requirement for school aged children Applies to public and private schools (except home-based private) Begins in the 2016-17 school year Exemptions to be limited to only medical reasons Process for personal belief exemption available until January 1, 2016 o Does not apply to students entering Kindergarten or grade 7 o Otherwise, remains in place until the student moves into 7 th grade

25. SB 277 (Pan/Allen) Special Ed students cannot be denied access to services outline their IEP due to being unvaccinated Two alternatives: o Home-based private school o Independent study program “that does not include classroom-based instruction” CCIS working with CDE/DPH on guidance Expect lawsuits In the meantime: Be careful – remember intent

26. Contact Information Thank you, please contact us if we can provide additional information: Barrett Snider - barrett@capitoladvisors.orgbarrett@capitoladvisors.org