LAO 2004-05 Budget Analysis: Education Issue-By-Issue TOC
Analysis of the 2004-05 Budget Bill
Education Issue-By-Issue Contents
Overview
Funding Per Student
Historical Perspective on Funding Per Student
Proposition 98
Proposition 98 Allocations
Enrollment Funding
Setting Education Priorities for 2004-05
Crosscutting Issues
Proposition 98 Budget Priorities
Governor's Suspension Proposal Reasonable
How a Proposition 98 Suspension Would Work
Governor's Proposal Would Save at Least $2 Billion
Annually for Several Years
Legislature Can Eliminate Prior- and Current-Year
Proposition 98 Obligations Through Suspension
Proposition 98 Certification Process in Need of
Reform
Credit Card Balance High and Growing
Other Issues
LAO Recommended Reductions
Increase K-12 Local Fiscal and Program Flexibility
CCC Spared From Higher Education Reductions
Additional Budget Options Provided in Perspectives and
Issues
K-12 Education
K-12 Introduction
Overview of K-12 Education Spending
Major K-12 Funding Changes
Proposition 98 Spending by Major Program
Enrollment Trends
Budget and Policy Implications
Budget Issues
Governor's Categorical Consolidation Proposal
Governor's Proposal
Programs Proposed for Consolidation
Accountability Requirements
Benefits of the Governor's Plan
Issues and Recommendations
Which Programs Should Be Consolidated?
LAO Alternate Criteria—A Focus on Accountability
Remove Staff Development Programs
Remove Funding for Services to Special Needs Students
Add Three Programs to the New Grant
Impact of the LAO Recommendations
Transition Issues May Result in Unintended Consequences
Proposal May Trigger Collective Bargaining Provisions
Expanded Community Participation Is Unlikely to Occur With
2004-05 Funds
Limit District Discretion During Transition Period
State Information Role Is Neglected
Community Involvement Is a Key Element
Conclusion
Teacher Quality
Shifting Sends Confusing Message
Retaining Existing System Perpetuates Mixed Messages
Consolidate Existing Programs Into Teacher Quality Block
Grant
Enhance Accountability for Improving Teacher Quality
Governor's School Safety Consolidation
Problems With Current Situation
Concerns With the Governor's Proposal
LAO School Safety Block Grant Proposal
Benefits of the LAO School Safety Block Grant Proposal
High Administrative Costs Prohibit SDE From Administering
Current-Year Grants
Safety Plans for New Schools Program Overfunded
Charter Schools
Details of Governor's Proposal Problematic
Restructure Charter School Funding Model—Simplify and
Equalize
Economic Impact Aid
EIA Formula Is Outdated and Problematic
Heavy Emphasis on Poverty Skews Per-Pupil Payments
District Allocations Appear Arbitrary and Unpredictable
Simplify and Refocus EIA Formula
Maintain Key Features of the Current Funding Model
District Allocations Under the LAO Proposal
Merge Other Funds Into EIA
Conclusion
Revenue Limits
Simplify The Revenue Limit Formula
Which
Add-Ons Provide General Purpose Funds?
Add-Ons Distort Funding Distribution
Consolidate
Add-Ons Into Base Revenue Limits
Delete Equalization Funds
Assess "Size and Type" Funding Distinctions
Reinstate Reductions for Basic Aid Districts
Mandates
Reform of the Mandate Process
K-12 Mandate Issues
Recognize Offsetting Revenues
Reconsider the STAR Mandate
Revise Statutes to Broaden Federal Exclusion
Eliminate Two Mandates
Federal Accountability And Assessments
Accountability
Integrate State and Federal School Intervention Programs
Federal Law Requires District Interventions
Federal Funds to Assist Schools and Districts Going Unused
Legislature Should Set Realistic Expectations For Federal
Accountability
Assessments
State Risks Losing Federal Funds
Instructional Materials
Governor's Proposal Contradictory
Governor's Funding Level Too High
Education Technology
County Offices of Education Internet Access
Background
Governor's Proposal—High Cost and Low Benefit
Childcare
Background
CalWORKs Child Care System
Non-CalWORKs Child Care System
Current-Year Child Care Reforms
Governor's Budget Proposes Additional Reforms
Eligibility Restrictions
Income Eligibility
Age Eligibility
Stage 3 Eligibility Limits
Eligibility Limits for Nonworking Parents
Weighing the Costs and Benefits of Restricting Child Care
Eligibility
Provider Reimbursement
Family Fees
Proposition 49: After School Education and Safety
Program
When Will Proposition 49 Trigger?
Higher Education
Higher
Education Introduction
Total Higher Education Budget
Proposal
Major Funding Sources
Funding by Segment
Major Cost Drivers for Higher
Education
Major Budget Changes
Enrollment Growth
Student Fees
Student Financial Aid
Budget Issues
Intersegmental:
Preserving Student Access In Tough Fiscal Times
K-14 Outreach
Enrollment
Student Fees
Financial Aid
Intersegmental: K-14
Outreach Programs
Governor Proposes
Outreach Reductions
What Is Outreach?
Outreach Programs Rapidly
Expanded in Late 1990s
Funding for Some Outreach
Programs Recently Declined
LAO Assessment of Current
Outreach Efforts
Focus Outreach Efforts
Where They Are Most Needed
Minimize Program
Duplication Within Outreach
Specify Clear Program
Goals That Directly Link With Services Provided
Make Better Use of Other
Education Funding
Outreach Should Focus on
Needs of K-12 Students
LAO Recommendations
Establish College
Preparation Block Grant For K-12 School Districts
Redirect Some Community
College Outreach Funds To Proposed Block Grant
Expand Uses of Remaining
Community College Financial Aid Outreach Funds
Preserve Selected UC and
CSU Outreach Programs
UC's ASSIST Program and
Graduate and Professional School Outreach
CSU's Early Assessment
Program
Redirect Funds to Support
Outreach
Intersegmental: Higher
Education Admissions and Enrollment
Governor's Budget Proposal
Segments Have Base
Enrollment Funding To Serve Additional Students
UC Has Funding in Its Base
Budget To Enroll Additional Students in 2004-05
CSU Plans to Enroll Fewer
Students Than Proposed in Governor's Budget
Can the State Maintain Its
Commitment To the Master Plan?
Master Plan's Principles
for College Access
No Need to Abandon Master
Plan Commitment
Segments Can Accommodate
Additional Eligible Students
Task of Defining
Eligibility Under the Master Plan Has Largely Been Delegated to the Segments
Recommendations to Ensure
Continued Access
Redirect Lower Division
Students to Community College
Return to Master Plan's
Special Admission Caps
Implement Policies to
Preserve Access for State's Eligible Students
Reexamine Existing
Eligibility Standards
Conclusion
Intersegmental: Student
Fees
Undergraduate and
Graduate Fees
Background
Set Fees at Fixed
Percentage of Students' Total Education Costs
Use New Policy to Develop
Budget-Year Plan and Out-Year Implementation Plan
Encourage Higher Fees for
Higher-Cost Graduate Programs at CSU
Score Additional
$9.5 Million Associated With CSU's Summer Term
Professional School Fees
Critical Budgeting
Assumption Reduces Potential General Fund Savings by $56 Million
New Fee Surcharges
Excess Unit Surcharge
Aggressively Pursue
Option, Link With Reporting Requirement
Baccalaureate Surcharge
Intersegmental:
Financial Aid
Concerns With Projected
Cal Grant Cost Estimates
Excess Funding Should Be
Used for Identified Cal Grant Needs
Income Ceilings
Adhere to Existing
Policy for Adjusting Cal Grant Income Ceilings
The Private University
Cal Grant
Link Private University
Cal Grant to Standard Subsidy
The Public university
Cal Grant
Retain Existing Policy
Basis Used to Set Value of Public University Cal Grant
The Institutional Aid
Set Aside
Maintain Integrity of
Cal Grant Program Before Further Expanding Undergraduate Institutional Aid
Eliminate Small,
Specialized Institutional Aid Programs
University of California (6440)
Student Fee Increases
Intersegmental Issues
Involving UC
Other Issues
Restoration of One-Time
Reduction From 2003-04
Merced Campus
California State University
(6610)
Student Fee Increases
Intersegmental Issues
Involving CSU
Restoration of One-Time
Reduction From 2003-04
California Community
Colleges (6870)
Major Budget Changes
Proposition 98 Spending
by Major Program
Student Fees
Enrollment Funding
Special Treatment of
Noncredit Instruction Not Warranted
Governor Proposes
Categorical Reform
Description of the Proposal
Benefits of Categorical
Reform
Proposal a Step in Right
Direction, But Falls Short
Some Categorical
Consolidations Are Largely Symbolic
Proposal Lacks Adequate
Accountability Measures
Governor Proposes
$80 Million for Equalization
Budget-Year Funding Should
Be Directed To Existing Obligations
Overdue Reports Hinder
Accountability
Report on Allocation of
$25 Million Concurrent Enrollment Reduction
Report on Allocation of
Apportionment Funding
Student Aid Commission
(7980)
Major Budget Proposals
Retain Existing APLE
Priorities
The EdFund Surplus
Use EdFund Operating Surplus
to Relieve General Fund
Intersegmental Financial Aid
Issues
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