LAO 2007-08 Budget Analysis: Education TOC Analysis of the 2007-08 Budget Bill
Education Issue-By-Issue Contents


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


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


California Education Network


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


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


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


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


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


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


CSAC Has Not Been Able to Revise Operating Agreement

Structural Reform Needed