Current Legislative Updates

CASP Legislative Reports

With the Legislature’s return on January 4^th,  the Governor’s State of the State address on January 5^th,  and the Governor’s release of his proposed State Budget on January 10^th, the 2006 session is off and running.  The Legislature is moving forward on the Governor’s Strategic Growth Plan, holding numerous interim hearings.   The Strategic Growth Plan includes over $26 billion in school construction and modernizations funds.  The plan will expand capacity for 250,000 more students and will modernize classrooms with cutting edge equipment, retrofit buildings to meet current safety standards, and build new ones to make room for the growing number of students. 

Budget Overview

California’s revenue condition has improved dramatically in the past two years.  The Department of Finance estimates that general fund revenues have increased by $5.5 billion over the past two years.  Revenues will increase in the budget year (2006-07) by another $4.3 billion for a total three year increase of $9.8 billion.  It appears that overall general fund expenditures under the Administration’s proposal will increase by 8.4%

($ 7.6 billion). 

The Governor’s budget calls for the repayment of $1.67 billion from Proposition 98 money used to balance last year’s budget.  The budget states that the remaining money left to “repay” the education budget is $1.4 billion while the Education Coalition has argued that the total figure is $5 billion. 

Of the $1.67 payback, the Governor is earmarking much of it to pay for Proposition 49 afterschool programs ($428 million); Art and Music Block Grants, Physical Education Grant programs, Digital Classroom Block Grants and low performing schools funding ($400 million); and partial coverage of the K-12 COLA ($561 million).

Special Education

The budget includes $161.6 million to fund statutory COLA on state special education funding and $6.5 million to fund enrollment growth.  The budget continues to supplant state education dollars with federal dollars and could be at risk of losing $10 million in federal special education funding. 

The Governor’s budget continues to provide $100 million in special education funding in the Department of Education budget for mental health services to special education pupils as required by IDEA.  In addition, the budget includes $50 million non-Proposition 98 General Fund as a set-aside in the Commission on State Mandates budget for categorical program funding for mental health services to pupils beyond those that are federally required under the IDEA.  The Administration will consult stakeholders and the Legislature to determine how the new categorical program should be structured, budgeted, and administered in order to ensure continued services and to maximize federal funding for services. 

Governor’s Strategic Growth Initiative

The Strategic Growth proposal is wide-ranging in scope, focusing on the infrastructure needs for the 21st century. 

The cornerstone of this plan includes a $68 billion General Obligation Bond to increase funding for transportation, K-12 school construction and modernization, higher education facilities, flood control, levee upgrade and restoration, water storage, and jail and court construction. 

If approved by the Legislature, the bond vote will be authorized for the next five election cycles, starting with June 2006 election and ending with the November 2014 election. 

The Governor is proposing $26.3 billion over the next 10 years for K-12 facilities construction and modernization.  He is also proposing $11.7 billion for higher education facilities. 

Process

The Legislature has announced the creation of a two house conference committee to begin work in an attempt to place these bonds on the June 2006 ballot, in order to meet the March/April deadline.    This process, of course, will take a 2/3 vote of the Legislature.  The conference committee is made up of the following members:  Senate- Murray, Chesbro, Hollingsworth; Assembly- Laird, Chu and Keene. 

Legislative leadership have directed policy committees to hold informational hearings on the subject matter germane to their committee.   After a number of hearings, these policy committees will then present reports (both majority and minority reports, if necessary) to the Conference Committee who will work on language and make decisions on big issues such as bond sizes and on which ballot or ballots the bonds will appear.  The Big-Five leaders will also meet on a parallel track to deal with any outstanding issues.  The policy committees will make their reports to the Conference Committee on February 22^nd. 

Legislative Deadlines

We expect over three thousand bills to be introduced in the 2006 session, on top of the many two year bills that are still alive.  The deadline to introduce bills into the 2006 session is February 24^th.   Most bills will be introduced closer to the deadline. 

Assemblyman Yee is has reintroduced his Comprehensive Pupil Learning Support System.  Last year his bill was Assembly Bill 171.  The newly introduced version is Assembly Bill 2003 and should be heard in the Assembly Education Committee in 1-2 months.