LAO 2003-04 Budget Analysis: Education Issue-By-Issue TOC
Analysis of the 2003-04 Budget Bill
Education Issue-By-Issue Contents
Overview
Funding Per Student
Historical Perspective of Funding Per Student
Proposition 98
Proposition 98 Allocations
Enrollment Growth
Setting Education Priorities for 2003-04
Crosscutting Issues
2002-03 Mid-Year Revisions:
Proposition 98
Governor's Mid-Year Budget Proposal
Governor's Recommendations for K-12
Governor's Recommendations for CCC
Using Prior-Year Savings to Reduce Proposition 98
Funding
Mid-Year Revisions Adopted by Legislature
K-12 Reductions Made by Legislature
CCC Reductions Made by Legislature
Additional Reductions Could Be Taken in the Current Year
Deferral May Threaten Federal Funding for Special
Education
Proposition 98 Budget-Year
Priorities
Building the 2003-04 Education Budget With Due Caution
Reduce the Level of Deferrals—Education Credit Card Maxed
Out
Make Ongoing Spending Reductions
Provide Schools Greater Fiscal and Programmatic
Flexibility
An LAO Spending Alternative
Highlighting Other High-Priority Issues
Child Care Realignment Merits Consideration
California Community Colleges Face Sizeable Reduction
Addressing Two Overarching Proposition 98 Minimum
Guarantee Issues
Estimated Higher Proposition 98 Minimum Guarantee in
2003-04
How Does Proposition 98 Suspension Work?
K-12 Education
K-12 Education Introduction
Proposition 98 Spending by Major Program
Enrollment Trends
K-12 Enrollment Growth to Slow Significantly
Divergent Trends in Elementary and High School Enrollment
Budget and Policy Implications
Budget Issues
Governor's Categorical Program
Reform Proposal
Governor's Proposal
Proposal Excludes Some Categorical Programs
Benefits of the Governor's Plan
The Governor's Plan—Problems and Solutions
Proposal Ignores Negative Local Incentives
Categorical Grants Would Become General Purpose Funds
Effectiveness of Accountability Systems Still Unproven
Block Grant Misses Opportunities to Empower Districts
Some Programs Are Excluded Unnecessarily
Improving the Governor's Plan
General Features of the LAO Proposal
Protect Program Areas That Alter Local Incentives
Use Data to Increase Local Accountability
Allow Broad Program Flexibility
Provide Fiscal Flexibility
Focus Funds and Responsibility on Districts
Specific Features of the LAO Block Grants
Academic Improvement Block Grant
Compensatory and Alternative Education Block Grant
Core Services Block Grant
Vocational Education Block Grant
Regional Support Block Grant
Information Needed on Proposed Staff Reductions
Proposition 98 Mandates
Background
Problems With Mandates
Benefits of Placing Mandates in a Block Grant
How Mandates Would Work in a Block Grant
Revenue Limits and Discretionary
Funds
Basic Aid Districts
Reduction to Basic Aid Payments
Funding Reductions to Excess-Tax Basic Aid Districts
Class Size Reduction
Evaluations Uncover Three Major Findings
Three Policy Lessons for Developing Future Education
Reforms
Include K-3 CSR Program in New Academic and Instructional
Improvement Block Grant
Option—Create Pilot Program to Compare Cost-Effectiveness
of CSR and Teacher Initiatives
Assessments
Overview and History of STAR Program
The STAR Program Transitions to Standards-Based Tests
LAO Assessment-Related Recommendations
Reduce Emphasis on NRT
Eliminate Primary Language Test Requirement
Eliminate Golden State Exam
Eliminate Physical Fitness Test Mandate
Appendix 1
Appendix 2
Accountability
Background on State and Federal Sanction and Intervention
Systems
II/USP and HPSGP
NCLB Act of 2001
Funding for School Accountability Programs
Current Year Changes Adopted by Legislature Create Future
Obligations
2003-04 Proposed Budget Reduces Funding for State
Interventions
Funding Proposed for 2003-04 Is Insufficient
Fundamental Differences Between State and Federal
Accountability Systems
Growth Targets Measure Different Goals
Entity Responsible for Interventions Different
Different Sanction and Intervention Requirements
Differences in Accountability Programs Create Unwieldy
System
Use of Both API and AYP Creates Confusion
Multiple Intervention Programs Create Mixed Messages
Cost of Continuing Duplicative Programs High
NCLB Creates Unrealistic Standards
Framework for an Integrated Accountability System
Focus State Interventions at the School District Level
Target State Interventions at the Neediest Schools
Provide Less Intensive Interventions at Higher Performing
Schools
Redesign HPSGP to Serve State and Federal Purposes
Transition Schools in State Intervention Programs To New
System Expeditiously
Change Definition of Proficiency
Set Aside Funding for Restructured Accountability System
Instructional Materials
Benefits of Recognizing Chapter 481 Materials
Special Education
Budget Threatens Federal Funding
Child Care and Development
Child Care Realignment
Problems With the Current Child Care System
Realignment and the Proposition 98 Minimum Guarantee
Child Care Realignment Merits Consideration
State Operations Reduction Due to Realignment
The CalWORKs Child Care System
Background
Governor's CalWORKs Child Care Budget
Governor Eliminates Funding for Stage 3 in Budget Year
Proposition 49: After School Education and Safety
Program
What Are the Spending Requirements of Proposition 49?
When Will the State Be Required to Increase Funding?
Commission on Teacher Credentialing
(6360)
Major General Fund Budget Proposals
New Federal Accountability Provisions Further Raise Stakes
Improve Coherence, Maximize Flexibility, and Increase
Accountability Among CTC's Local Assistance Programs
Leverage Federal Funds to Expand Services for Emergency
Permit Holders
Other K-12 Issues
Academic Volunteer and Mentor Service Program
Enhance State's Teacher Information System
Higher Education
Higher
Education introduction
Major Budget Changes
Student Financial Aid
Budget Issues
Intersegmental: LAO Alternative
Budget Proposal
Student Fees
Enrollment
Financial Aid
LAO Alternative
LAO Proposal Preserves Instructional Programs and Promotes
Access
Intersegmental: Student Fees
Background
Governor's Fee Proposal
CPEC Recommendations for Long-Term Resident Student Fee
Policy
Implicit Student Fee Policy Has Hidden Costs to State,
Difficult for Students
New Financial Aid Guarantee Insulates Needy Students From
Fee Increases
Students and Families Pay Only a Small Share of Costs
LAO Alternative to Governor's Fee Increase
Conclusion
Intersegmental: Enrollment Growth
Higher Education Enrollments
Governor's Budget Proposal
Concerns With Governor's Proposal
Inconsistent Treatment of Enrollment Growth
FTE Versus Headcount Enrollment
No Rationale for Providing Excessively High Budgeted Enrollment
Growth
More Effective Ways Available to Promote
"Access"
No Need to Increase Funding for Students Already Enrolled
at UC and CSU
Recommend 4 Percent Growth Funding
Intersegmental: Financial Aid
Governor's Scholarship Programs
Eliminate Governor's Scholarship Programs
Option—Convert Entirely to Pay-As-You-Go System
Cal Grant Awards for Private-College Students
UC and CSU's Institutional Aid Programs
Reexamining the Rationale for Institutional Aid Programs
Governor Proposes Massive Augmentation to UC and CSU's
Institutional Aid Budgets
Appropriate Augmentation in Budget Act, Specify General
Policy Guidelines
Fee Assistance for First-Year Cal Grant B Recipients
California Postsecondary Education
Commission (6420)
Analysis of the Governor's Proposal for CPEC
Report Examines CPEC's Mission, Governance, and Data and
Analysis
LAO Recommendation
CPEC Eligibility Study
University of California (6440)
First Student Fee Increases in Eight Years
UC Alternative Budget Proposal
UC Can Minimize Impact of Unallocated Reduction on
Instruction by Increasing Student-Faculty Ratio
Outreach Programs
Background
LAO Recommendation
Other Issues
Additional Funding for Unopened Campus Not a Clear
Priority
Avoid Dismantling Subject Matter Projects
California State University (6610)
Major Budget Proposals
General Fund Support Per Student
LAO Alternative Budget Proposal
Remedial Education
Determining College Preparedness
Many CSU Students Arrive Unprepared for College-Level
Coursework
Establish Accountability in Remedial Education
Require CSU to Assess the Effectiveness of Precollegiate
Services
Fund Precollegiate Courses at the Community College Credit
Rate
K-12 Outreach Programs
State's Overall Outreach Strategy
Target Proposed Outreach Reductions
General Fund Carryover
Previous Carryover Amounts and Uses
Carryover Language Weakens Legislative Oversight
California Community Colleges (6870)
Major Budget Changes
Proposition 98 Spending by Major Program
Student Fees
What Share of Their Educational Costs Should Community
College Students Pay?
How Large of an Increase Is Appropriate?
What Can Be Done to Minimize the Negative Effects of a Fee
Increase?
Governor's Proposed Fee Increase Is Reasonable
Enrollment Funding
Concurrent Enrollment
LAO Recommendation—Approve $80 Million Reduction,
Modify Concurrent Enrollment Statute
Partnership for Excellence
Withhold Recommendation Pending CCC Report.
Student Aid Commission (7980)
Major General Fund Budget Changes
Augments Funding for Cal Grant A and Cal Grant B Programs
Increases Funding for APLE Program by Almost Half
Reduces Cal Grant C Program Funding to Slightly Below
2001-02 Level
Reduces Cal Grant T Program Funding by About
50 Percent
Eliminates Work Study Program
Intersegmental Financial Aid Issues
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