LAO 2007-08 Budget Analysis: Education TOC
Analysis of the 2007-08 Budget Bill
Education Issue-By-Issue Contents
Overview
Funding Per Student
Proposition 98
Proposition 98 Allocations
Enrollment Funding
Setting Education Priorities for 2007-08
Crosscutting Issues
Proposition 98 Update
Governor’s Budget
Prior-Year Adjustments
Current-Year Adjustments
Budget-Year Estimates
Legislative Analyst’s Office Forecast
Current-Year Adjustments
Budget-Year Estimates
Legislature Faced With Tough Decisions
Update on Other Proposition 98 Issues
Proposition 98 Settle-Up Obligations
The Effect of Declining Attendance on the Proposition 98 Minimum Guarantee
The Underlying Dynamics of the Proposition 98 “Test 1” Factor
Proposition 98 Priorities
Governor Proposes a “Baseline” Budget
LAO Proposition 98 Forecast—Lower Revenues, Higher Guarantee
Achieving Proposition 98 Savings
Current-Year Proposition 98 Savings
Maintain Priority on Reducing Credit Card Debt
A Proposition 98 Roadmap
Many Benefits From Taking a Long-Term Perspective
Significant New Revenues in Forecast
Recent Research Efforts Could Help Inform Planning
A Roadmap Expresses Priorities, Other Program Goals
Major Components of a K-12 roadmap
Data Reveal Significant Performance Gaps
Address Needs of High School Students
Maintain School District Fiscal Health
Implementing the Roadmap’s K-12 Priorities
Early Child Development and Preschool
Augment Programs Targeting At-Risk Students
Create Fiscal Solvency Block Grants
How the LAO Plan Adds Up
Major Components of a CCC Roadmap
Major Recent Improvements in Community College Funding
Projected Slowing of CCC Enrollment
Community College Performance Challenges
Investing New Resources to Meet CCC’s Challenges
How the LAO Plan for the CCC System Adds Up
Conclusion
Career Technical Education
First-Year Grants—2005-06
Coordination Problems at All Levels
Program Needs a Long-Term Foundation
Program Needs to Define Long-Term Goals
Competitive Grants Pose Problems
$400 Million Is Enough to Upgrade CTE Statewide
Establish Regional CTE Improvement Grants
Conclusion
California Education Network
Background
Fund Baseline Budget and Technology Refresh
Ensuring Transparency
Recent Actions Taken to Improve Transparency
Chapter 552, Statutes of 2006 (AB 1228, Daucher)
Enhanced Transparency and Contractual Improvements Should Be Applied to All Education Segments
2006-07 Budget Act Control Language
K-12 Introduction
Overview of K-12 Education Spending
Proposition 98 Per-Pupil Funding
Major K-12 Funding Changes
Proposition 98 Spending by Major Program
Enrollment Trends
Home-to-School Transportation
Reject Home-to-School Transportation Proposals
Use PTA to Maximize Current- and Budget-Year Savings Without the Risk
Child Care and Development
Child Care and Development Programs
Child Care Programs
Child Development Programs
Types of Non-CalWORKs Child Care
Support Activities and Services
Governor’s Stage 2 Child Care Proposal
Expanding Child Development Programs for Low-Income Children
Wrap Around Child Care
New Programs More Restrictive Than Existing Programs
Approve New Ongoing Monies for Wrap Around Care Without Restrictions
Child Development Facilities
Approve Proposal to Transfer CCFRF Monies to FRR Program
Reexamine CCFRF’s Major Renovation and Repair Program
Child Care and Development Quality
California Is Concerned About Quality but Efforts Are Not Coordinated
A Child Care and Development Quality Plan
Key Elements of a Plan
Quality Education Investment Act
Introduction
Lawsuit Sought Additional $2.8 Billion for K-14 Education
Technical Note on the Numbers
K-14 Education to Receive Additional $2.8 Billion Over Next Seven Years
K-12 Monies Support New CSR Initiative
QEIA Approach to School Reform Has Several Shortcomings
Small Changes Could Yield Significant Benefits
Make Accounting of QEIA Monies More Transparent, Accurate
English Learners
EL Students in California
EL Student Demographics
EL Student Performance
CELDT Results
STAR Results
CAHSEE Results
Overview of Major Issues And Recommended Next Steps
Funding
Current State Approach to Funding EL Students
Revisiting State’s Approach to Funding EL Students
Community-Based English Tutoring (CBET) Program
Instructional Approach
Instructional Materials
Teacher Quality
Teacher Preparation
Professional Development
Assessment and Accountability
Conclusion
Soledad Enrichment Action Charter School
Community Day Schools
Soledad Operates Large Program
State Accountability System Does Not Permit Evaluation of SEA
Alternative Accountability System Is Ineffective
Provide Extension for Soledad
Make Major Changes in Alternative Programs
Conclusion
Higher Education Introduction
Total Higher Education Budget Proposal
Major Funding Sources
Funding by Segment
Major Cost Drivers for Higher Education
Major Budget Changes
Capital Outlay
Intersegmental: Making Budgeting Choices in Higher Education
Higher Education Budget—Key Choices
Summary of LAO Recommendations
Intersegmental: UC and CSU Outreach Programs
Governor Proposes Outreach Reductions
What Is Outreach?
State Funding for Outreach Programs Has Varied
Outreach Funding Increased Rapidly in Late 1990s
Outreach Funding Declined for Next Few Years
Outreach Funding Has Remained Stable, Despite Recent Efforts to Reduce Funding
Program Evaluations Have Not Been Conclusive
Different Approaches for Evaluating and Funding Outreach
External Evaluation of UC and CSU Programs
College Preparation Block Grant for K-12 Schools
Intersegmental: UC and CSU Enrollment Growth and Funding
Higher Education Enrollment
Headcount Enrollment—Higher Education Participation
FTE Enrollment—Budgeted Enrollment Targets
Governor’s Budget Proposal
How Much Enrollment Growth to Fund?
Provide 2 Percent Enrollment Growth
Plan for State’s Long-Term Higher Education Priorities
How Much General Fund Support Should Be Provided for Each Additional Student?
Development of the Marginal Cost Methodology
UC and CSU Used Different Methodologies Before 1992
New Methodology Adopted in 1990s
Marginal Cost Review Requested for 2006-07
Governor Proposes Same Methodology That Legislature Rejected
Concerns With Governor’s Proposal
Ignores Contribution of Student Fees
Overbudgets Faculty Costs
Limits Legislative Budgetary Discretion
Fund Enrollment Growth Based on Legislative Methodology
Intersegmental: Student Fees
Setting Student Fee Levels
How Can the Legislature Influence Fee Levels?
Explicit Student Fee Policy Needed
Absent Policy Direction, Maintain Current Share of Cost for 2007-08
Current Fee Levels Modest by National Standards
Recommend Lower Fee Increases at UC and CSU
“Buying Out” Proposed Fee Increases Does Not Make Sense
What About the Backfill of CCC’s Fee Reduction?
Intersegmental: Higher Education Nursing Proposals
Background on State Nursing Requirements and Programs
State Requirements to Becoming a Registered Nurse
Nursing Programs in California
Nursing Program Admissions Policies Vary
CCC Assessment and Selection Policies
Recent Trends
Recent Nursing Program Augmentations
Governor’s Proposal
University of California
California State University
California Community Colleges
LAO Recommendations
Standardize Approach for Funding Nursing Expansion
CCC—Reject Current-Year Augmentations
CCC—Budget-Year Request
CCC—Assess Admissions Polices
Departmental Issues
California Postsecondary Education Commission (6420)
Reassessing CPEC Responsibilities
Earlier Budget Reductions Prompted Examination of CPEC’s Focus
2007-08 Proposal Would Focus CPEC’s Responsibilities
Other Data Management Responsibilities Should Be Retained
New Approach to Faculty Compensation Needed
University of California (6440)
Major General Fund Proposals
Student Fee Increases
Intersegmental Issues Involving UC
General Fund Base Increase
PRIME
Research Initiatives on Technological Innovation
Overview of UC Research Funding
Governor’s Research Proposals
California Institutes for Science and Innovation
Petascale Supercomputer
Improving UC’s Long Range Development Planning Process
What Is an LRDP?
Concerns With Growth Levels and Off-Campus Impacts
How Much Does Each UC Campus Plan to Grow?
Who Pays for Off-Campus Impacts Related to Growth?
LRDP Process Lacks Accountability, Standardization, and Clarity
Lack of State Accountability and Oversight
Lack of Standardization in Public Participation
Minimal Systemwide Coordination in Projecting Enrollment for Recent LRDPs
Campuses Want to Primarily Expand Graduate Enrollment
Lack of Clarity in CEQA
No UC Campus Has Reached a Fair Share Agreement
LAO Recommendations
Greater Legislative Oversight
Develop Standard Approach for Soliciting Public Input
Project Enrollment Growth on Systemwide Basis
Better Use of Summer Term
Streamline CEQA Process by Clarifying Guidelines
Report on Fair Share Agreements
UC Capital Outlay
Telemedicine Facilities
Alternative Energy Research Proposals
California State University (6610)
Major General Fund Proposals
Student Fee Increases
Intersegmental Issues Involving CSU
General Fund Base Increase
Science and Math Teacher Initiative
Long Range Planning Issues
Each CSU Campus Prepares a Physical Master Plan
City of Marina v. CSU Board of Trustees
LAO Recommendations
Greater Legislative Oversight
Update on Mitigation of Off-Campus Impacts
CSU Capital Outlay
California Community Colleges (6870)
CCC Budget Overview
Major Budget Changes
Proposition 98 Spending by Major Program
Student Fees
Enrollment Levels and Funding
Recent Trends
Current-Year Enrollment Funding
Enrollment Restoration Funding
Enrollment Restoration Funds Exceed $160 Million
2006-07 Enrollment Growth Funding
2007-08 Enrollment Growth Funding
Performance Measurement and Accountability
“Partnership for Excellence” Had Limited Success
New Reporting System Developed
Accountability Reporting for the Community Colleges
CCC Funding Reforms Should Enhance Accountability
Recent Reports Focus on Accountability and Community College Performance
Recommend State Focus on Improving Student Completions; Provide Locals Flexibility to Achieve Results
Making Better use of Basic Skills “Overcap” Funding
Current-Year Basic Skills Initiative
Program Double Funded in Current Year
Governor Proposes to Redirect Budget-Year Overcap Funds for Matriculation
Legislature Should Put Freed Up Funding to Best Use
Newly Identified Mandate Review
Integrated Waste Management Mandate
Savings and Revenues Cannot Be Considered Offsets to Program Costs
Options to Reduce Program Costs
CCC Capital Outlay
Chancellor’s Office Should Recalculate Capacity Factors
Student Aid Commission (7980)
Major Budget Proposals
Assumption Program of Loans for Education
Not All Authorized Awards Being Used
Legislature Should Again Reject Governor’s Proposal
National Guard APLE (NG-APLE)
State Nursing APLE and State Facilities Nursing APLE
Cal Grant Programs
Recent Statutory Changes
Cal Grant Funding for 2007-08
Restructure State Administration of Grant and Loan Programs
Background
CSAC Has Not Been Able to Revise Operating Agreement
Structural Reform Needed
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