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SB 820 – Education Budget Bill (Urgency Bill Effective Immediately On September 18, 2020)
Prohibits Participating Party from Declaring Bankruptcy if Bonds are Issued to Fund Several Financings of Working Capital for Several Participating Parties
The California School Finance Authority issues revenue bonds to finance projects or working capital for a single or several participating parties, including a school district, county office of education, charter school, or community college district that undertakes the financing or refinancing of a project or working capital. SB 820 prohibits participating parties from declaring bankruptcy if bonds issued for purposes of borrowing to fund several financings of working capital for several participating parties under a single resolution remain outstanding.
Sale or Lease of Surplus Real Property by School Districts for Property Not Previously Operated, or Not Constructed as a School
The Education Code requires a school district to appoint a district advisory committee to advise the board regarding the sale, lease, or rental of any excess real property. Under SB 820 governing boards of school districts need not appoint an advisory committee when:
They seek the sale or lease of surplus real property; and
The district did not previously operate the real property in question, or the real property was not constructed as, an early childhood education facility or as school for elementary and secondary education.
This exemption applies only until January 1, 2024.
Reduction in Allocations for Reducing Outstanding Balance of Constitutional Minimum
Current law appropriates $282,237,000 from the General Fund in the 2019-2020 fiscal year for allocation to school districts and community college districts for the purpose of reducing the outstanding balance of the Constitutional minimum financial obligation. Existing law allocates $149,059,000 of that amount to the San Francisco Unified School District and San Francisco County Office of Education. SB 820 reduces the overall amount for these purposes to $266,306,000 and the amount for the San Francisco Unified School District and San Francisco County Office of Education to $133,128,000.
Changes Apportionment Calculation for Local Educational Agencies that Meet Specified Requirements Based on Enrollment Growth
Previously, the Legislature waived apportionment calculations for a local educational agency and related calculations for the 2020-2021 fiscal year to be based on the local educational agency’s average daily attendance in the 2019-2020 school year. SB 820 makes local educational agencies that meet specified requirements eligible for an apportionment calculation for the 2020-2021 fiscal year based on growth in the local educational agency’s actual enrollment in the 2020-2021 fiscal year. School districts, county offices of education, and charter schools with growth in overall pupil enrollment from the 2019-2020 level to its projected 2020-2021 level are eligible. If a local educational agency does not document or project enrollment growth in its most recent 2020–21 budget, or in its adopted 2019–20 second interim report, it may use overall pupil average daily attendance growth from its actual 2019–2020 level to its projected 2020–2021 level, as documented in its most recent 2020–2021 budget, or in its adopted 2019–20 second interim report to establish eligibility for the apportionment calculation.
Requires Superintendent of Public Instruction to Update the Template for the Local Control Funding Formula Budget Overview
Previously, the Legislature waived the requirement for governing boards of school districts, county boards of education, and charter schools to prepare a local control and accountability plan (LCAP) for the 2020-2021 school year. In lieu of the LCAP, these entities must adopt a learning continuity and attendance plan. Existing law also requires governing boards of school districts, county boards of education, and charter schools to develop a summary document known as the local control funding formula budget overview for parents by July 1, of each year. SB 820 requires the Superintendent of Public Instruction to update the template and instructions for the local control funding formula budget overview for parents by September 15, 2020, to reflect realignment with the learning continuity and attendance plan.
Requires State Superintendent of Public Instruction to Update the Template for the Annual Update to the Local Control and Accountability Plan
The Education Code requires the State Superintendent of Public Instruction to adopt templates for purposes of the local control and accountability plans (LCAP) and annual updates. Existing law requires school districts, county offices of education, and charter schools to include the information reported in their learning continuity and attendance plans as part of the annual update to the local control accountability plan for the 2021-2022 school year.
Under SB 820, for purposes of the annual update to the LCAP for the 2021–22 school year required by the Education Code, a school district, county office of education, or charter school must include the actions and expenditures included in the learning continuity and attendance plan adopted pursuant the Education Code and the local control and accountability plan adopted for the 2019–20 school year.
SB 820 also requires the Superintendent of Public Instruction, in consultation with the executive director of the State Board of Education, to revise the template for the annual update to the local control and accountability plan before January 31, 2021, to reflect the inclusion of the learning continuity and attendance plan in the 2021–22 annual update.
Changes Definition of Instructional Materials to Include Hardware
Previous law provided for the adoption and selection of instructional materials for use in elementary and secondary schools, including technology-based materials. The definition of technology-based materials included software programs, video disks, compact disks, and databases, but did not include the equipment required to utilize those materials (e.g., computers, laptops, or tablets). Existing law prohibited school districts from replacing computers or related equipment in an existing computer lab or establish a new computer lab under these provisions.
SB 820 deleted the sections regarding electronic equipment from the definition of technology-based materials and the prohibitions on replacing equipment or establishing a new computer law. Technology-based materials now include the electronic equipment required to make use of other materials, including laptop computers and devices that provide internet access. This will assist public educational institutions in providing the technology required for distance education.
Allows the University of California to Use Funds from Reduction of Annual Debt Service Costs to Mitigate Impacts to Programs and Ensure Continued Employment of Employees
Existing law requires the University of California to reduce annual debt service costs by refunding, defeasing, or retiring general obligation bonds or State Public Works lease revenue bonds if it is able to and to use the savings to reduce the existing unfunded liability of the University of California retirement plan. SB 820 allows the University of California to reduce annual debt service costs by the same manner in fiscal years 2020-2021 and 2020-2022 and use the savings to:
Mitigate the impacts to programs and services that predominately support underrepresented student access to, and success, at the university; and
Provide for continued employment of employees without resorting to involuntary layoffs, furloughs.
These provisions apply only during the 2020-2021 and 2021-2022 fiscal years. SB 820 makes these provisions inoperable on July 1, 2023, and repeals them on January 1, 2024.
Allows Purchase of Laptop Computers with Lottery Funds
Proposition 20, requires that 50 percent of any increase in revenues generated by lottery games for the benefit of public education be allocated to school districts and community college districts for the purpose of instructional materials. SB 820 authorizes instructional materials to include, but not be limited to, laptop computers and devices that provide access for use by pupils, students, teachers, and faculty as learning resources.
Extends Date for University of California Adoption of Procedures for Handling Native American Human Remains and Cultural Items
Currently, the Regents of the University of California must adopt and implement certain policies and procedures relating to the culturally appropriate treatment of, and the identification and disposition of, certain Native American human remains and cultural items as a condition of using state funds to handle those items. Previous law required the adoption of the policies and procedures by January 1, 2020. SB 820 extends the date by which the Regents must conditionally adopt the policies to January 1, 2021.
Repeals Law Allocating $3,500,000 to the San Francisco Unified School District for Professional Development
Previous law required the Superintendent of Public Instruction to annually allocate $3,500,000 to the San Francisco Unified School District for purposes of supporting professional development and leadership training for education professionals. SB 820 repealed that provision.
Waives Requirements for After School Education and Safety Program
Existing law establishes the After School Education and Safety (ASES) Program under which participating public schools receive grants to operate before and after school programs serving students in grades 1 through 9. Existing law also establishes the 21st Century High School After School Safety and Enrichment for Teens (ASSETs) Program to create incentives for establishing after school enrichment programs to provide academic support and safe, constructive alternatives for high school pupils and to support college and career readiness. SB 820 authorized the State Department of Education to waive certain ASES transportation funding provisions and the requirement that an after school program pursuant to the High School ASSESTs program operates for a minimum of 15 hours per week.
Because it is a bill providing for the appropriations related to the budget bill, SB 820 became effective immediately when the Governor signed it on September 18, 2020.
(SB 820 amends Sections 313.3, 8209, 14041.8, 17199.4, 17391, 17463.7, 37700, 41024, 41207.47, 43501, 43502, 43503, 43504, 43505, 43509, 48412, 51461, 52065, 52074, 56836.07, 56836.148, 56836.24, 60010, 69996.3, 71000, and 92495 of, adds Sections 1241, 17199.15, 43502.5, 43506.5, and 92411 to, adds and repeals Section 92496.1 of, the Education Code, amends Sections 14900, 14901, 14902, 14903, 14904, 14905, 14906, 14910, and 14911 of, to adds Section 8880.4.1 to, and repeals Section 14905.1 of, the Government Code, amends Sections 8025, 102426, and 102430 of, and adds Section 8024 to, the Health and Safety Code, repeals Section 48 of Chapter 29 of the Statutes of 2016, to amend Sections 1, 2, 3, 4, 5, 6, 7, and 8 of Chapter 3 of the Statutes of 2020, and amends Sections 95, 97, 110, 111, 112, 116, 117, 118, and 119 of Chapter 24 of the Statutes of 2020, relating to education finance.)