BILL NUMBER: ABX3 4	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 29, 2009
	AMENDED IN SENATE  FEBRUARY 14, 2009
	AMENDED IN ASSEMBLY  JANUARY 7, 2009

INTRODUCED BY   Assembly Member Evans

                        JANUARY 5, 2009

    An act to amend Sections 2558.46, 14041.5, 17592.71,
41203.1, 42238, 42238.146, 52124, and 60119 of, to amend, repeal, and
add Section 17584.1 of, to add Sections 14041.6, 17070.766,
17592.74, 41207.3, 42238.49, 42605, 52124.3, and 92612.5 to, and to
add and repeal Sections 1240.3 and 60422.1 of, the Education Code, to
amend Items 6110-196-0001, 6110-234-0001, 6110-488, 6870-101-0001,
and 6870-295-0001 of, to add Items 6110-111-0046 and 6110-111-3116
to, and to repeal Item 6110-111-0001 of, Section 2.00 of, and to add
Section 12.42 to, and to repeal Sections 12.40 and 35.80 of, the
Budget Act of 2008 (Chapters 268 and 269 of the Statutes of 2008),
and to amend Sections 34, 35, and 37 of, and to repeal Section 33 of,
Chapter 757 of the Statutes of 2008, relating to education finance,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately.   An act to amend Sections
8879.65, 16965, and 65086.5 of the Government Code, to amend Sections
99312 and 99315 of, and to add and repeal Section 21683.3 of, the
Public Utilities Code, to amend Section 7103 of the Revenue and
Taxation Code, and to amend Sections 2102, 2103, 2104.1, 2106.3,
2106.4, 2107.1, 2107.2, 2107.3, 2107.6, 2109, 2111, 2112, 2113, 2114,
and 2115 of the Streets and Highways Code, relating to
transportation. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 4, as amended, Evans.  Education  
Transportation  finance. 
   (1) Existing law requires the county superintendent of schools of
each county, among other specified duties, to make annual visits to
each school in his or her county at reasonable intervals to observe
its operation and to learn of its problems. Existing law requires
that the priority objective of those visits be the determination of
whether each school has sufficient textbooks, as defined. 

   This bill would revise the definition of sufficient textbooks for
the 2008-09 and 2009-10 fiscal years and, during those fiscal years,
would require a county superintendent of schools to use that revised
definition to determine whether a school has sufficient textbooks.
The bill would make these provisions inoperative on July 1, 2010, and
repeal them on January 1, 2011.  
   (2) Existing law requires a revenue limit to be calculated for
each county superintendent of schools, adjusted for various factors,
and reduced, as specified. Existing law reduces the revenue limit for
each county superintendent of schools for the 2008-09 fiscal year by
a deficit factor of 4.396%.  
   This bill would instead reduce the revenue limit for each county
superintendent of schools for the 2008-09 fiscal year by a deficit
factor of 7.839%, and for the 2009-10 fiscal year by a deficit factor
of 13.360%.  
   (3) Existing law specifies that the amount apportioned for revenue
limits for a school year that are be deemed to attributed to the
minimum funding obligation for school districts and community college
districts for the following fiscal year shall be $715,118,000.
 
   This bill would change that amount and set the amount at
$1,101,655,000 for the 2008-09 and each school year thereafter.
 
   (4) Existing law requires the Controller to draw warrants on the
State Treasury in favor of the county treasurer of each county in
each month of each year in prescribed amounts and in a prescribed
manner.  
   This bill, commencing with the 2008-09 fiscal year, would require
the warrants for the principal apportionments for the month of
February in the amount of $2,000,000,000 to be drawn in July of the
same calendar year and would require those warrants to be applied
toward the minimum funding requirements for school districts and
community college districts imposed by Section 8 of Article XVI of
the California Constitution for the year in which they are drawn.
 
   (5) The Leroy F. Greene School Facilities Act of 1998 requires the
State Allocation Board to require school districts applying for
funds under that act to deposit, into a specified account for ongoing
and major maintenance of school buildings, an amount equal to or
greater than 3% of the total general fund expenditures of the
applicant school district.  
   This bill, for the 2008-09 to the 2012-13 fiscal years, inclusive,
would reduce that deposit requirement to an amount equal to or
greater than 1% of the total general fund expenditures of the
applicant school district.  
   (6) Existing law requires a governing board of a school district
to discuss proposals and plans for expenditure of funds for the
deferred maintenance of school district facilities at a regularly
scheduled public hearing. Existing law requires the governing board
to make a report on the district's spending priorities for the
current fiscal year to the Legislature, with copies to the
Superintendent of Public Instruction, the State Board of Education,
the Department of Finance, and the State Allocation Board, by March 1
of any year that the school district does not set aside prescribed
funds for the deferred maintenance of its facilities. 

   This bill would make this report requirement inoperative for the
2008-09 to 2012-13 fiscal years, inclusive.  
   (7) Existing law directs that an amount of moneys be transferred
in the annual Budget Act from the Proposition 98 Reversion Account to
the School Facilities Emergency Repair Account. The amount to be
transferred is required to equal 50% of the unappropriated balance of
the Proposition 98 Reversion Account or $100,000,000, whichever
amount is greater. The moneys transferred are required to be used for
the purpose of addressing emergency facilities needs. 

   This bill, for the 2009-10 fiscal year, would reduce the amount
required to be transferred pursuant to the requirement above to zero.
 
   The bill would prohibit funds provided to school districts from
the School Facilities Emergency Repair Account for the purpose of
emergency repair grants from being used either to supplant funds
provided to local educational agencies for the deferred maintenance
of school facilities pursuant to specified statutes or for deposit
into a school district deferred maintenance fund for expenditure for
specified purposes.  
   (8) Existing law requires, for the 1990-91 fiscal year and each
fiscal year thereafter, that moneys to be applied by the state for
the support of school districts, community college districts, and
direct elementary and secondary level instructional services provided
by the state be distributed in accordance with certain calculations
governing the proration of those moneys among the 3 segments of
public education. Existing law makes that provision inapplicable to
the fiscal years between the 1992-93 and 2008-09, inclusive.
 
   This bill would make that provision inapplicable to the 2009-10
fiscal year.  
   (9) The California Constitution requires the state to apply a
minimum amount of funding for each fiscal year for the support of
school districts and community college districts. The Superintendent
of Public Instruction and the Director of Finance, by January 1,
2006, are required to jointly determine the outstanding balance of
the minimum funding obligation to school districts and community
college districts pursuant to the California Constitution for the
1995-96 to 2003-04 fiscal years, inclusive. Existing law, commencing
with the 2006-07 fiscal year, annually appropriates $150,000,000 from
the General Fund to the Controller for allocation to school
districts and community college districts for the purpose of
discharging in full the outstanding balance of the minimum funding
obligation to school districts and community college districts
pursuant to the California Constitution. Existing law cancels that
annual appropriation for the 2008-09 fiscal year.  
   This bill, in addition, would provide that, if the Superintendent
and the Director of Finance jointly determine that, for the 2008-09
fiscal year, the state has applied moneys for the support of school
districts and community college districts in an amount that exceeds
the minimum amount required for that fiscal year pursuant to the
California Constitution, the bill would deem $1,100,590,000, as of
June 30 of that fiscal year, as a payment in satisfaction of the
outstanding balance, as defined, of the minimum funding obligation
under that section for the 2002-03 and 2003-04 fiscal years, as
specified.  
   (10) Existing law requires a revenue limit to be calculated for
each school district and each county superintendent of schools and
requires the amount of the revenue limit to be adjusted for various
factors.  
   This bill would, for the 2011-12 fiscal year, require the
Superintendent to compute an equalization adjustment for each school
district so that the prior year base revenue limit per unit of
average daily attendance of a school district is not less than the
prior year base revenue limit per unit of average daily attendance
above which fall not more than 10% of the total statewide units of
average daily attendance for the appropriate size and type of school
district.  
   (11) Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county,
and requires the amount of the revenue limit to be adjusted for
various factors. Existing law reduces the revenue limit for each
school district for the 2008-09 fiscal year by a deficit factor of
4.713%.  
   This bill would instead reduce the revenue limit for each school
district for the 2008-09 fiscal year by a deficit factor of 7.844%,
and for the 2009-10 fiscal year by a deficit factor of 13.094%.
 
   (12) Existing law establishes various categorical education
programs and appropriates the funding for those programs in the
annual Budget Act. That act authorizes local educational agencies to
expend up to 10% of the amount apportioned under specified
categorical education programs for the purposes of any other program
for which the recipient is eligible for funding, as specified.
 
   This bill would instead reduce by a percentage, calculated as
specified, the appropriations made in the Budget Act of 2008 to
school districts and county offices of education in enumerated items
that fund specified categorical education programs. The bill would
authorize school districts, for the 2008-09 to 2012-13 fiscal years,
inclusive, to use the funds received pursuant to any of those budget
items, with specified exceptions, for any educational purpose, to the
extent permitted by federal law. The school districts and county
offices of education would be required, at a regularly scheduled,
open, public hearing, to take testimony from the public, discuss, and
approve or disapprove the proposed use of funding, and to report to
the State Department of Education, in the existing annual
Standardized Accounting System reporting process, the purposes for
which the funds were used and the amounts used for each of those
purposes. The department would be required to collect and provide
this information to the appropriate legislative policy and budget
committees and the Department of Finance by February 28, 2010.
 
   (13) Existing law establishes the Class Size Reduction Program
under which a participating school district or county office of
education reduces class size to 20 pupils per class in kindergarten
and grades 1 to 3, inclusive. If a school district or county office
of education receives funding for a class but fails to reduce the
size of that class to 20 pupils, the school district or county office
of education suffers a reduction in its next principal apportionment
of state funds.  
   This bill would reduce the amount of this penalty for the 2008-09,
2009-10, 2010-11 and 2011-12 fiscal years, as specified. 

   (14) The Pupil Textbook and Instructional Materials Incentive
Program Act requires the governing board of a school district to hold
a public hearing and make a determination as to whether each pupil
in each school in the district has sufficient textbooks or
instructional materials in the subjects of mathematics, science,
history-social science, and English/language arts that are aligned to
the adopted content standards and that are consistent with the
content and cycles of the curriculum framework adopted by the State
Board of Education. Existing law subjects school districts that
receive funds from any state source to this and specified
requirements only in a fiscal year in which the Superintendent of
Public Instruction determines that the base revenue limit for each
school district will increase by at least 1% per unit of average
daily attendance from the prior fiscal year.  
   This bill would delete the condition related to the increase in
revenue limit funding so that school districts would be subject to
the requirements when they receive funds for instructional materials
from any state source.  
   (15) Existing law establishes the Instructional Materials Funding
Realignment Program that requires the State Department of Education
to apportion funds to school districts and requires the governing
board of a school district to use that funding to ensure that each
pupil is provided with a standards-aligned textbook or basic
instructional materials by the beginning of the first school term
that commences no later than 24 months after those materials were
adopted by the State Board of Education, except as specified.
 
   This bill, until July 1, 2010, would exempt school districts from
that requirement.  
   (16) Existing law establishes a statewide system of public
postsecondary education that includes, among other segments, the
various campuses of the University of California, which is
administered by the Regents of the University of California.
 
   This bill would state the intent of the Legislature that no new
General Fund augmentation be made available for contributions to the
University of California Retirement Plan.  
   (17) Existing law appropriates $39,780,000 from the General Fund
to the Board of Governors of the California Community Colleges, in
augmentation of an amount appropriated pursuant to a specified item
in the Budget Act of 2008, to provide a 0.68% cost-of-living
adjustment to apportionments to community college districts for
expenditure during the 2008-09 fiscal year.  
   This bill would repeal this provision.  
   (18) Existing law appropriates $388,283,000 from the General Fund
to the State Department of Education for 10 specified programs
according to a specified schedule, and requires the department to
encumber these funds by July 1, 2009. This appropriation reflects the
June 2009 principal apportionment that is deferred to July 2009.
Included in this appropriation is $52,583,000 for home-to-school
transportation.  
   This bill would eliminate that appropriation for home-to-school
transportation and instead would appropriate $570,000,000 for class
size reduction in kindergarten and grades 1 to 3, inclusive. The bill
would increase the total appropriation from $388,283,000 to
$905,700,000 to reflect the February 2009 principal apportionment and
the 2009 payment for class size reduction in kindergarten and grades
1 to 3, inclusive. The funds appropriated would be applied toward
the minimum funding requirements for school districts and community
college districts imposed by Section 8 of Article XVI of the
California Constitution for the 2009-10 fiscal year. 

   (19) The Budget Act of 2008 appropriates $200,000,000 from the
General Fund to the Board of Governors of the California Community
Colleges for expenditure during the 2009-10 fiscal year. 

   This bill would increase that appropriation to a total of
$540,000,000, and would defer the disbursal of those funds until July
2010. The amount appropriated would represent $115,000,000 of the
January apportionment to community college districts, $115,000,000 of
the February apportionment to those districts, $55,000,000 of the
March apportionment and $55,000,000 of the April apportionment, and
$200,000,000 of the June apportionment of those districts. The funds
appropriated would be applied toward the minimum funding requirements
for school districts and community college districts imposed by
Section 8 of Article XVI of the California constitution for the
2009-10 fiscal year.  
   (20) Existing law provides no cost-of-living adjustment for
specified education programs for the 2008-09 fiscal year. 

   This bill would add the categorical block grant for charter
schools to the list of programs not receiving a cost-of-living
adjustment for the 2008-09 fiscal year.  
   (21) The Budget Act of 2008 makes various appropriations for
purposes of public education.  
   This bill would reduce or eliminate specified appropriations made
in that Budget Act.  
   (22) This bill would appropriate $198,446,000 from the Public
Transportation Account in the State Transportation Fund to the State
Department of Education for purposes of home-to-school
transportation, to be allocated as specified.  
   (23) This bill would appropriate $420,268,000 from the Mass
Transportation Fund to the State Department of Education for purposes
of home-to-school transportation, to be allocated as specified.
 
   (24) The Budget Act of 2008 makes various appropriations for
purposes of child care and development programs.  
   This bill would reduce specified General Fund appropriations made
in that Budget Act for those purposes. The bill also would
reappropriate the unobligated balances from other specified
appropriations to the State Department of Education for CalWORKs
Stage 2 Child Care services, as specified.  
   (25) This bill would reappropriate for the 2008-09 fiscal year
prescribed amounts or the unexpended balance of specified
appropriations made in specified prior Budget Acts to the State
Department of Education for allocation to the Class Size Reduction
Program in kindergarten and grades 1 to 3, inclusive. 

   (26) This bill would appropriate $958,283,000 from the General
Fund to the State Department of Education for 11 specified programs
according to a specified schedule and would require the department to
encumber these funds by July 31, 2010. The bill would provide that,
for purposes of satisfying the minimum annual funding obligation for
school districts required by the California Constitution, the
appropriated funds are General Fund revenues appropriated for school
districts and community college districts for the 2010-11 fiscal
year.  
   (27) Existing law requires the Board of Governors of the
California Community Colleges to adopt regulations providing for the
payment of apportionments to community college districts on a
schedule to include an advance apportionment on or before July 15 of
each year, and a first and 2nd principal apportionment on or before
February 20 and June 25 of each year, respectively. 

   Existing law requires the Controller to draw warrants on the State
Treasury in favor of the county treasurer of each county in each
month of each year during the fiscal year from the State School Fund
to the school districts under the jurisdiction of the county
superintendent of schools of the county, to the county school service
fund, and to the county school tuition fund of the county. Warrants
for 6% of specified amounts allowed to the county school service
funds and 6% of specified amounts apportioned to school districts and
county school service funds for classes maintained by county
superintendents of schools and to the county service fund are
required to be drawn in July. For the 2008-09 fiscal year only the
entire amount of the July warrant for the county school service fund
and a specified percentage of the amount of the July warrant for
school district apportionments, county school service fund
apportionments for classes maintained by the county superintendent of
schools, and county school tuition fund apportionments are deferred
to the warrants drawn in September.  
   This bill would defer $200,000,000 of the July 2009 community
college advance apportionment to October 2009. The bill also would
defer $1,000,000,000 of the July 2009 and $1,500,000,000 of the
August 2009 apportionments for local educational agencies that
maintain kindergarten or any of grades 1 to 12, inclusive, to October
2009.  
   (28) This bill would appropriate $540,000,000 from the General
Fund to the Board of Governors of the California Community Colleges
for expenditure during the 2010-11 fiscal year according to a
specified item in the Budget Act of 2009. The bill would defer until
July 2011 the disbursal of those funds. The amount appropriated would
represent $115,000,000 of the January apportionment to community
college districts, $115,000,000 of the February apportionment to
those districts, $55,000,000 of the March apportionment and
$55,000,000 of the April apportionment, and $200,000,000 of the June
apportionment to those districts. The bill would provide that, for
purposes of satisfying the minimum annual funding obligation for
community college districts required by the California Constitution,
those funds are General Fund revenues appropriated for community
college districts for the 2010-11 fiscal year.  
   (29) Existing law requires the Superintendent of Public
Instruction, the Controller, and the Director of Finance to develop
standards and criteria to be reviewed by the State Board of Education
and to be used by local educational agencies in the development of
annual budgets and the management of subsequent expenditures from
those budgets.  
   This bill, for the 2008-09 fiscal year only, would authorize the
governing board of a school district or county office of education to
use up to 100% of the balances, as of June 30, 2008, of restricted
accounts in its general fund or cafeteria fund, excluding restricted
reserves committed for capital outlay, bond funds, sinking funds,
federal funds, and balances in designated programs. 

   (30) This bill would require the Superintendent of Public
Instruction to reduce the principal apportionment for school
districts and county offices of education for the 2008-09 fiscal
year, as necessary, if, during that fiscal year, the Controller has
disbursed funds from the appropriations reduced by the bill in
amounts greater than the amounts remaining in those appropriations
following the reductions and the Superintendent determines there is
no other way to recover the funds that have been disbursed during the
2008-09 fiscal year.  
   (31) This bill would set the cost-of-living adjustment for
community day schools, for specified items in the Budget Act of 2009,
and for specified items in the Budget Act of 2008 for the 2009-10
fiscal year at 0% notwithstanding the cost-of-living adjustment
specified in existing statutes.  
   (32) This bill would require funds appropriated pursuant to
specified items in the Budget Act of 2009 to be encumbered by July
31, 2010.  
   (1) The Motor Vehicle Fuel Tax Law imposes a tax of $0.18 per
gallon on motor vehicle fuel, commonly referred to as gasoline. The
Diesel Fuel Tax Law imposes a tax of $0.18 per gallon on diesel fuel.
These revenues, after certain deductions for nonhighway fuel uses,
are deposited in the Highway Users Tax Account. Approximately 1/3 of
the revenues in the account are apportioned by various formulas to
cities and counties, and most of the remaining revenues are deposited
in the State Highway Account after specified transfers to the
Bicycle Transportation Account and the State Parks and Recreation
Fund. Under Article XIX of the California Constitution, the portion
of fuel tax revenues that is derived from use in motor vehicles upon
public streets and highways is restricted for expenditure on street
and highway and certain mass transit guideway purposes, and up to 25%
of these and other vehicle-related revenues that are available for
street and highway purposes may be pledged or used for the payment of
principal and interest on voter-approved bonds issued for those
purposes.  
   This bill would modify the apportionment of fuel tax revenues
designated for street and highway and guideway purposes for the
2009-10 and 2010-11 fiscal years. For those years, the bill would
provide for 65% of revenues to be deposited in the State Highway
Account and 25% to be deposited in the Transportation Debt Service
Fund. Of the remaining 10% of revenue, additional fuel tax revenues
would be transferred to the Transportation Debt Service Fund in an
amount equivalent to 25% of vehicle weight fee revenues for the
2009-10 fiscal year only, certain amounts would be made available to
the Bicycle Transportation Account and the State Parks and Recreation
Fund, and the remaining revenues would be
                   apportioned to cities and counties by certain
formulas.  
   (2) Existing law, pursuant to Proposition 116 of 1990, creates the
Public Transportation Account as a trust fund in the State
Transportation Fund, provides that revenues are to be deposited in
that account from specified portions of the sales taxes on gasoline
and diesel fuel, and provides that moneys in the account are
available for expenditure only for transportation planning and mass
transportation purposes. Existing law creates the Mass Transportation
Fund in the State Treasury and provides that for the 2009-10 to
2012-13 fiscal years all of the gasoline sales tax revenues commonly
known as the "spillover" that would otherwise be deposited in the
Public Transportation Account shall be deposited instead in that
fund. Existing law specifies the transportation purposes that may be
funded by the fund, including payment of debt service on
transportation general obligation bonds by transfer of funds from the
Mass Transportation Fund to the Transportation Debt Service Fund.
Existing law creates the Transportation Debt Service Fund in the
State Treasury for the purpose, among other things, of using
transportation revenues rather than the General Fund for the payment
of debt service on transportation bonds or to reimburse the General
Fund in that regard.  
   This bill, for the 2009-10 fiscal year, would provide that up to
$225,044,000 from the Public Transportation Account may be used to
reimburse the General Fund for current debt service payments on
transit-related general obligation bonds and up to $101,826,000 from
that account may be used to reimburse the General Fund for
home-to-school transportation expenditures. The bill would also
provide for transfer from the Mass Transportation Fund to the
Transportation Debt Service Fund of any amount of the "spillover"
funds received during the 2009-10 to 2012-13 fiscal years necessary
to offset the cost of debt service payments made from the General
Fund during any fiscal year for transportation-related general
obligation bond expenditures.  
   This bill would also authorize the Director of Finance to
reimburse the General Fund, from revenues transferred to the
Transportation Debt Service Fund from the Highway Users Tax Account,
any amount necessary to offset the cost of debt service payments made
from the General Fund during any fiscal year for
transportation-related general obligation bond expenditures
consistent with specified provisions of Article XIX of the California
Constitution.  
   (3) Existing law establishes the Aeronautics Account in the State
Transportation Fund. Existing law imposes a per gallon jet fuel tax
on aircraft jet fuel dealers and requires that the funds be deposited
in the State Treasury to the credit of the Motor Vehicle Fuel
Account in the Transportation Tax Fund. Existing law requires that
moneys deposited to the credit of the Motor Vehicle Fuel Account
attributable to the distribution of motor vehicle fuel for use in
propelling an aircraft in the state be transferred to the Aeronautics
Account in the State Transportation Fund.  
   Existing law requires funds in the Aeronautics Account to be used
to pay the Controller and the State Board of Equalization for their
pro rata costs in carrying out the duties imposed on them by the
Motor Vehicle Fuel Tax Law and to pay the Department of
Transportation for the administration of the State Aeronautics Act.
Existing law allows the remaining balance of moneys in the account to
be used for preapproved eligible projects that are for airport and
aviation purposes, to make allocations to public entities for the
aquisition or development of airports if the department determines
that it is feasible, and to allow the California Transportation
Commission to provide local matching funds for federal Airport
Improvement Program Grants.  
   This bill would suspend these grants and funding programs for the
2009-10 fiscal year. The bill would require $4,000,000 to be
transferred from the Aeronautics Account to the General Fund, upon
the order of the Director of Finance. These provisions would be
repealed on January 1, 2011.  
   (4) Existing law, the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006, authorizes the issuance
of general obligation bonds for various transportation purposes,
including $2,000,000,000 for local street and road improvement,
congestion relief, and traffic safety. Existing law requires a city
or city and county that receives an allocation of those funds in the
2008-09 fiscal year to agree to encumber the funds before July 1,
2009.  
   This bill would instead require a city or city and county that
receives an allocation of those funds in the 2008-09 fiscal year to
agree to encumber the funds before July 1, 2010.  
   (5) Existing law requires the Department of Transportation, in
consultation with transportation planning agencies, county
transportation commissions, counties, and cities, to carry out
long-term state highway system planning. Existing law authorizes the
department, to the extent that it does not jeopardize the delivery of
projects in the adopted state transportation improvement program, to
prepare a project studies report for capacity-increasing state
highway projects. Existing law requires the department to review
project studies reports performed by an entity other than the
department. Existing law authorizes a local entity to request the
department to prepare a project studies report for a
capacity-increasing state highway project that is being proposed for
inclusion in a future state transportation improvement program. If
the department determines that it cannot complete the report in a
timely fashion, existing law authorizes the requesting entity to
prepare the report.  
   This bill would require the department to be reimbursed by a
requesting entity for any work performed by the department when it
reviews or prepares these project studies reports.  
   (6) This bill would make other related changes.  
   (33) 
    (7)    The California Constitution authorizes
the Governor to declare a fiscal emergency and to call the
Legislature into special session for that purpose. The Governor
issued a proclamation declaring a fiscal emergency, and calling a
special session for this purpose, on December 19, 2008.
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution. 
   (34) This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:  2/3   majority  . Appropriation:
 yes   no  . Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 8879.65 of the  
Government Code   is amended to read: 
   8879.65.  (a) Funds appropriated from the Local Street and Road
Improvement, Congestion Relief, and Traffic Safety Account of 2006,
established by subdivision (l) of Section 8879.23, shall be made
available to the Controller for allocation to cities, counties, and a
city and county. From bond funds appropriated in the 2007-08 fiscal
year for cities, including a city and county, each city, and city and
county, shall receive at least a minimum allocation of four hundred
thousand dollars ($400,000), as described in subparagraph (B) of
paragraph (1) of subdivision (l) of Section 8879.23. The remainder of
the funds appropriated for cities, including a city and county,
shall be allocated in the proportion described in subparagraph (B) of
paragraph (1) of subdivision (l) of Section 8879.23. In no case
shall a city, or a city and county, receive an allocation in excess
of its total share, as described in subdivision (l) of Section
8879.23, except as described in subdivision (d).
   (b) Prior to receiving an allocation of funds from the Controller
in a fiscal year, an eligible local agency shall submit to the
Department of Finance a list of projects expected to be funded with
bond funds pursuant to an adopted city, county, or city and county
budget. All projects proposed to be funded with funds from the
account shall be included in a city, county, or city and county
budget that is adopted by the applicable city council or board of
supervisors at a regular public meeting. The list of projects
expected to be funded with bond funds shall include a description and
the location of the proposed project, a proposed schedule for the
project's completion, and the estimated useful life of the
improvement. The project list shall not limit the flexibility of an
eligible local agency to fund projects in accordance with local needs
and priorities so long as the projects are consistent with
subparagraph (B) of paragraph (1) of subdivision (l) of Section
8879.23.
   (1) The Department of Finance shall report monthly to the
Controller the eligible local agencies that have submitted a list of
projects as described in this subdivision.
   (2) Upon receipt of the information described in paragraph (1),
the Controller shall allocate funds to those agencies that have
submitted a list of projects, as reported by the Department of
Finance.
   (c) Each fiscal year upon expending funds from the account, a
city, county, or city and county shall submit documentation to the
Department of Finance which includes a description and location of
each completed project, the amount of funds expended on the project,
the completion date, and the project's estimated useful life. The
documentation shall be forwarded to the department, in a manner and
form approved by the department, at the end of each fiscal year until
the funds in the account are exhausted. The department may post the
information contained in the documentation on the department's
official Web site.
   (d) A city, county, or city and county receiving funds pursuant to
this section shall have three fiscal years to expend the funds
following the fiscal year in which the allocation was made by the
Controller, and any funds not expended within that period shall be
returned to the Controller and be reallocated to other cities,
counties, or a city and county, as applicable, pursuant to the
allocation formulas set forth in subparagraph (A) or (B) of paragraph
(1) of subdivision (l) of Section 8879.23, but excluding the
requirement for a minimum city allocation as described in
subparagraph (B) of paragraph (1) of that subdivision and section.
   (e) Subject to the requirements and conditions of this section, it
is the intent of the Legislature to appropriate funds from the
account so that the Controller may allocate the balance of these
funds to eligible local agencies over the next four years, following
the 2007-08 fiscal year. Nothing in this section shall prevent the
Legislature from appropriating funds on a more expedited basis based
on local agency need.
   (f) The sum of three hundred fifty million dollars ($350,000,000)
is hereby appropriated from funds in the Local Street and Road
Improvement, Congestion Relief, and Traffic Safety Account of 2006
created pursuant to subdivision (l) of Section 8879.23, for
allocation pursuant to this article, as an augmentation to the amount
appropriated in Item 9350-104-6065 of the Budget Act of 2007. The
total 2007-08 fiscal year appropriation of nine hundred fifty million
dollars ($950,000,000) shall be allocated as follows: four hundred
million dollars ($400,000,000) to counties and five hundred fifty
million dollars ($550,000,000) to cities. 
   (g) Notwithstanding the provisions of Item 9350-104-6065 of the
Budget Act of 2008, a city or city and county that receives any
portion of the funds appropriated by that item shall agree to
encumber the funds before July 1, 2010. 
   SEC. 2.    Section 16965 of the   Government
Code   is amended to read: 
   16965.  (a) The Transportation Debt Service Fund is hereby created
in the State Treasury. Moneys in the fund shall, among other things,
as provided in this section, be dedicated to payment of debt service
on bonds including bonds issued pursuant to the Clean Air and
Transportation Improvement Act of 1990 (Part 11.5 (commencing with
Section 99600) of Division 10 of the Public Utilities Code), the
Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17 (commencing
with Section 2701) of Division 3 of the Streets and Highways Code),
and the Seismic Retrofit Bond Act of 1996 (Chapter 12.48 (commencing
with Section 8879) of Division 1 of Title 2). If the moneys in the
fund are insufficient to pay the balance of the debt consistent with
existing obligations, the General Fund will be used to pay the
balance of any debt service.
   (b) (1) From moneys transferred to the fund pursuant to
subdivision (b) of Section 7103 of the Revenue and Taxation Code, the
Director of Finance is hereby authorized to reimburse the General
Fund for up to three hundred thirty-nine million two hundred
eighty-nine thousand three hundred forty-five dollars ($339,289,345)
for the purpose of offsetting the cost of debt service payments made
from the General Fund during the 2007-08 fiscal year for public
transportation-related general obligation bond expenditures in the
following amounts:
   (A) Clean Air and Transportation Improvement Act of 1990, one
hundred twenty-three million nine hundred seventy-three thousand four
hundred ninety-three dollars ($123,973,493).
   (B) Passenger Rail and Clean Air Bond Act of 1990, seventy million
nine hundred eighty-three thousand three hundred sixty-three dollars
($70,983,363).
   (C) Seismic Retrofit Bond Act of 1996, one hundred forty-four
million three hundred thirty-two thousand four hundred eighty-nine
dollars ($144,332,489).
   (2) From moneys transferred to the fund pursuant to subdivision
(b) of Section 7103 of the Revenue and Taxation Code, the Director of
Finance is hereby authorized to reimburse the General Fund in the
2007-08 fiscal year for two hundred million dollars ($200,000,000)
for the purpose of offsetting the cost of debt service payments made
in prior fiscal years from the General Fund for public
transportation-related general obligation bond expenditures.
   (c) From moneys transferred to the fund pursuant to 
subdivision   subdivisions  (c)  and (d) 
of Section 7103 of the Revenue and Taxation Code, the Director of
Finance is hereby authorized to reimburse the General Fund any amount
necessary to offset the cost of debt service payments made from the
General Fund during any fiscal year for transportation-related
general obligation bond expenditures.
   (d) From moneys transferred to the fund pursuant to an annual
Budget Act or other statute from the State Highway Account in the
State Transportation Fund  ,   or the Highway
Users Tax Account in the Transportation Tax Fund,  the Director
of Finance is hereby authorized to reimburse the General Fund any
amount necessary to offset the cost of debt service payments made
from the General Fund during any fiscal year for
transportation-related general obligation bond expenditures
consistent with Article XIX of the California Constitution.
   SEC. 3.    Section 65086.5 of the  
Government Code   is amended to read: 
   65086.5.  (a) To the extent that the work does not jeopardize the
delivery of the projects in the adopted state transportation
improvement program, the Department of Transportation may prepare a
project studies report for capacity-increasing state highway projects
that are not included in the state transportation improvement
program. Preparation of the project studies report shall be limited
by the resources available to the department for that work,
supplemented, as appropriate, by regional or local resources. The
project studies report shall include the project-related factors of
limits, description, scope, costs, and the amount of time needed for
initiating construction. 
   (b) Whenever project studies reports are performed by an entity
other than the Department of Transportation, the department shall
review and approve the report.  
   (c) 
    (b)  The Department of Transportation may be requested
to prepare a project studies report for a capacity-increasing state
highway project  which   that  is being
proposed for inclusion in a future state transportation improvement
program. The department shall have 30 days to determine whether it
can complete the requested report in a timely fashion. If the
department determines that it cannot complete the report in a timely
fashion, the requesting entity may prepare the report.  Whenever
project studies reports are performed by an entity other than the
department, the department shall review and approve the report.
Upon submission of a project studies report to the department by the
entity, the department shall complete its review and provide its
comments to that entity within 60 days from the date of submission.
The department shall complete its review and final determination of a
report which has been revised to address the department's comments
within 30 days following submission of the revised report.  The
department shall be reimbursed by the requesting entity for the work
performed pursuant to this subdivision.  
   (d) 
    (c)  The Department of Transportation, in consultation
with representatives of cities, counties, and regional transportation
planning agencies, shall prepare draft guidelines for the
preparation of project studies reports by all entities. The
guidelines shall address the development of reliable cost estimates.
The department shall submit the draft guidelines to the California
Transportation Commission not later than July 1, 1991. The commission
shall adopt the final guidelines not later than October 1, 1991.
Guidelines adopted by the commission shall apply only to project
studies reports commenced after October 1, 1991.
   SEC. 4.    Section 21683.3 is added to the  
Public Utilities Code   , to read:  
   21683.3.  (a) Notwithstanding any other provision of this article,
the grant or funding programs described in Sections 21682, 21683,
and 21683.1 are suspended for the 2009-10 fiscal year.
   (b) Upon the order of the Director of Finance, the Controller
shall transfer four million dollars ($4,000,000) from the Aeronautics
Account to the General Fund.
   (c) This section shall remain in effect only until January 1,
2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date. 
   SEC. 5.    Section 99312 of the   Public
Utilities Code   is amended to read: 
   99312.   The   Except as provided in Sections
99311 and 99311.5, the  funds  transferred to 
 in  the account  pursuant to Section 7102 of the
Revenue and Taxation Code  shall be made available for the
following purposes:
   (a) Fifty percent for purposes of Section 99315.
   (b) To the Controller, 25 percent for allocation to transportation
planning agencies, county transportation commissions, and the San
Diego Metropolitan Transit Development Board pursuant to Section
99314.
   (c) To the Controller, 25 percent for allocation to transportation
agencies, county transportation commissions, and the San Diego
Metropolitan Transit Development Board for purposes of Section 99313.

   (d) For the 2007-08 fiscal year, notwithstanding any other
provision of this section, or any other provision of law, the
allocations made pursuant to this section shall be adjusted as
follows:
   (1) From the funds transferred to the account pursuant to
paragraph (1) of subdivision (a) of Section 7102 of the Revenue and
Taxation Code, fifty million dollars ($50,000,000) is hereby
appropriated to the Controller and shall be allocated pursuant to
subdivision (b); fifty million dollars ($50,000,000) is hereby
appropriated to the Controller and shall be allocated pursuant to
subdivision (c); and the remainder of revenue shall remain in the
Public Transportation Account to fund other state public
transportation priorities. The Controller shall make these
allocations in four equal quarterly amounts of twelve million five
hundred thousand dollars ($12,500,000), as achievable by the receipt
of the specified revenue.
   (2) The amount appropriated in Item 2640-101-0046 of the Budget
Act of 2006 for state transit assistance pursuant to subdivision (b)
and (c) was greater than the amount of revenues received to support
state transit assistance pursuant to Section 7102 of the Revenue and
Taxation Code. Therefore, notwithstanding any other provision of law,
the amount that would have otherwise been available for
appropriation to state transit assistance in the 2007-08 fiscal year
pursuant to paragraphs (2) and (3) of subdivision (a) of Section 7102
of the Revenue and Taxation Code, shall be reduced by the excess
amount that was appropriated to state transit assistance in the
Budget Act of 2006, and that excess amount, as determined by the
Department of Finance, shall instead remain in the Public
Transportation Account to fund other state public transportation
priorities. The funding for state transit assistance as described in
this paragraph is hereby appropriated to the Controller for
allocation. The Controller shall attempt to spread this adjustment
equally over four quarterly payments, as achievable by revenue
estimates.
   (e) For the 2008-09 fiscal year and thereafter, notwithstanding
any other provision of this section or any other provision of law,
and except as provided in subdivision (f), the funds transferred to
the account pursuant to paragraph (1) of subdivision (a) of Section
7102 of the Revenue and Taxation Code shall be made available for the
following purposes:
   (1) For purposes of Section 99315, 33.34 percent, subject to
appropriation by the Legislature.
   (2) To the Controller, 33.33 percent for allocation to
transportation planning agencies, county transportation commissions,
and the San Diego Metropolitan Transit Development Board pursuant to
Section 99314. These funds are hereby continuously appropriated for
purposes of this paragraph.
   (3) To the Controller, 33.33 percent for the allocation to
transportation agencies, county transportation commissions, and the
San Diego Metropolitan Transit Development Board for purposes of
Section 99313. These funds are hereby continuously appropriated for
purposes of this paragraph.
   (f) For the 2009-10 to 2012-13 fiscal years, inclusive,
notwithstanding any other provision of this section or any other
provision of law, the funds  transferred to   in
 the account  pursuant to Section 7102 of the Revenue
and Taxation Code   subject to this section  shall
be made available only for purposes of Section 99315, subject to
appropriation by the Legislature.
   SEC. 6.   Section 99315 of the   Public
Utilities Code   is amended to read: 
   99315.  Funds made available pursuant to subdivision (a) of
Section 99312, shall be available for all of the following purposes:
   (a) To the department for bus and passenger rail services pursuant
to Sections 14035, 14035.5, and 14038 of the Government Code.
   (b) To the department for funding of public transit capital
improvement projects in the state transportation improvement program,
pursuant to Section 14529 of the Government Code.
   (c) To the department for its planning activities not payable from
the State Highway Account in the State Transportation Fund, its mass
transportation responsibilities, and its assistance in regional
transportation planning.
   (d) To the department for allocation by the director to the
Institute of Transportation Studies of the University of California
for training and research in public transportation systems
engineering and management and coordination with other transportation
modes.
   (e) To the commission for its activities not payable from the
State Highway Account.
   (f) To the Public Utilities Commission for its passenger rail
safety responsibilities specified in statute on commuter rail,
intercity rail, and urban rail transit lines.
   (g) To the State Department of Developmental Services for funding
of regional center transportation.
   (h) To the Department of Education for funding of home-to-school
transportation, pursuant to Article 10 (commencing with Section
41850) of Chapter 5 of, and Small School District Transportation,
pursuant to Article 4.5 (commencing with Section 42290) of Chapter 7
of, Part 24 of Division 3 of Title 2 of the Education Code.  For
the 2009-   10 fiscal year, the Director of Finance is
authorized to reimburse up to one hundred one million eight hundred
twenty-   six thousand dollars ($101,826,000) in General
Fund expenditures for home-to-school transportation.  
   (i) To reimburse the General Fund for current debt service
payments on transit-related general obligation bonds. For the 2009-10
fiscal year, the Director of Finance is authorized to reimburse up
to two hundred twenty-five million forty-four thousand dollars
($225,044,000) in General Fund expenditures for this purpose. 
   SEC. 7.    Section 7103 of the   Revenue and
Taxation Code   is amended to read: 
   7103.  (a) The Mass Transportation Fund is hereby created in the
State Treasury. Upon appropriation by the Legislature, moneys in the
Mass Transportation Fund may be used for, but shall not necessarily
be limited to, the following transportation purposes:
   (1) Payment of debt service on transportation bonds, or
reimbursement to the General Fund for past debt service payments on
transportation bonds.
   (2) Funding of the Department of Developmental Services for
regional center transportation.
   (3) Reimbursement to the General Fund for payments made by the
General Fund pursuant to subdivision (f) of Section 1 of Article XIX
B of the California Constitution.
   (4) Funding of home-to-school transportation, pursuant to Article
10 (commencing with Section 41850) of Chapter 5 of Part 24 of the
Education Code, and Small School District Transportation, pursuant to
Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24
of the Education Code.
   (b) From moneys transferred to the fund pursuant to subparagraph
(G) of paragraph (1) of subdivision (a) of Section 7102 in the
2007-08 fiscal year, the sum of five hundred thirty-nine million two
hundred eighty-nine thousand three hundred forty-eight dollars
($539,289,348) shall be transferred to the Transportation Debt
Service Fund, and the sum of eighty-two million six hundred
seventy-eight thousand dollars ($82,678,000) may be reimbursed by the
Director of Finance in the 2007-08 fiscal year for the purpose of
offsetting payments made by the General Fund pursuant to subdivision
(f) of Section 1 of Article XIX B of the California Constitution.
   (c) From moneys transferred to the fund pursuant to subparagraph
(H) of paragraph (1) of subdivision (a) of Section 7102 in the
2008-09 fiscal year, the sum of eighty-two million six hundred
seventy-eight thousand dollars ($82,678,000) may be reimbursed by the
Director of Finance for the purpose of offsetting payments made by
the General Fund pursuant to subdivision (f) of Section 1 of Article
XIX B of the California Constitution, and the Director of Finance may
transfer any funds remaining in the fund after this reimbursement of
the General Fund to the Transportation Debt Service Fund. 
   (d) From moneys transferred to the fund pursuant to subparagraph
(I) of paragraph (1) of subdivision (a) of Section 7102, the Director
of Finance may transfer to the Transportation Debt Service Fund any
amount necessary to offset the cost of debt service payments made
from the General Fund during any fiscal year for
transportation-related general obligation bond expenditures. 
   SEC. 8.    Section 2102 of the   Streets and
Highways Code   is amended to read: 
   2102.  Net revenue derived from a tax means the amount of revenue
derived from a tax that is deposited into the Highway Users Tax
Account in the Transportation Tax Fund  , less expenditures made
from that   account by the Controller for the purposes of
administering the account  .
   SEC. 9.    Section 2103 of the   Streets and
Highways Code   is amended to read: 
   2103.   (a)    At least 90 percent of the
balance deposited to the credit of the Highway Users Tax Account in
the Transportation Tax Fund by the 28th day of each month shall be
apportioned by the State Controller by the second working day
thereafter, except for June, in which case the apportionment shall be
made the same day. These apportionments shall be made as provided
for in Sections 2104 to 2122, inclusive. If information is not
available to make the apportionment as required, the apportionment
shall be made on the basis of the information of the previous month.
Amounts not apportioned shall be included in the apportionment of the
subsequent month. 
   (b) Notwithstanding anything in subdivision (a) or this chapter to
the contrary, for the 2009-10 and 2010-11 fiscal years, the net
revenue in the Highway Users Tax Account in the Transportation Tax
Fund shall be apportioned by the Controller as follows:  
   (1) Sixty-five percent of net revenues shall be transferred to the
State Highway Account in the State Transportation Fund for
expenditure in accordance with Section 163.  
   (2) Twenty-five percent of net revenues shall be transferred to
the Transportation Debt Service Fund for purpose of payment of
principal and interest on voter-approved bonds, consistent with
Section 5 of Article XIX of the California Constitution, subject to
appropriation by the Legislature.  
   (3) For the 2009-10 fiscal year only, an amount equal to 25
percent of the revenues received by the Department of Motor Vehicles
from vehicle weight fees pursuant to Section 9400 of the Vehicle Code
and deposited in the State Highway Account pursuant to Section 42205
of the Vehicle Code shall be transferred from net revenue in the
Highway Users Tax Account to the Transportation Debt Service Fund for
the purpose of payment of principal and interest on voter-approved
bonds, consistent with Section 5 of Article XIX of the California
Constitution, subject to appropriation by the Legislature.  

   (4) The sum of six hundred thousand dollars ($600,000) per month
shall be transferred to the Bicycle Transportation Account in the
State Transportation Fund.  
   (5) The sum appropriated by the Legislature in the annual Budget
Act pursuant to Section 2107.7 shall be transferred to the State
Parks and Recreation Fund.  
   (6) The money remaining after the transfers in paragraphs (1) to
(5), inclusive, shall be apportioned, as follows:  
   (A) Fifty and eight-tenths percent of the funds available shall be
apportioned among the counties, as follows:  
   (i) Seventy-five percent of the funds payable under this
subparagraph shall be apportioned among the counties monthly in the
respective proportions that the number of fee-paid and exempt
vehicles that are registered in each county bears to the total number
of fee-paid and exempt vehicles registered in the state. In that
regard, the Department of Motor Vehicles shall, as soon as possible
after the last day of each calendar month, furnish to the Controller
a verified statement showing the number of fee-paid and exempt
vehicles that are registered in each county and in the state as of
the last day of the calendar month as reflected by the records of the
Department of Motor Vehicles.  
   (ii) Twenty-five percent of the funds payable under this
subparagraph shall be apportioned among the counties monthly in the
respective proportions that the number of miles of maintained county
roads in each county bears to the total number of miles of maintained
county roads in the state.  
   (B) Forty-nine and two-tenths percent of the funds available shall
be apportioned among the cities, including a city and county, in the
respective proportions that the total population of the city bears
to the total population of all of the cities in the state.  

   (c) All other provisions of this chapter, to the extent not
inconsistent with subdivision (b), shall continue to apply for the
2009-10 and 2010-11 fiscal years. 
   SEC. 10.    Section 2104.1 of the   Streets
and Highways Code   is amended to read: 
   2104.1.  The Controller shall deduct annually, from the amount
apportioned pursuant to Section 2104  or subparagraph (A) of
paragraph (6) of subdivision (b) of Section 2103, as applicable 
, the amount identified as applicable to counties in the report
submitted in the preceding fiscal year pursuant to Section 191, and
shall transfer the amount to the State Highway Account.

      SEC. 11.    Section 2106.3 of the  
Streets and Highways Code   is amended to read: 
   2106.3.  If Los Angeles County elects to allocate any portion of
the revenues it receives pursuant to  Section 2104 or 2106
  this chapter  to the cities within the county
under any program in which those revenues are allocated to at least
70 percent of the cities, it shall make allocations to each city
within the county based on the two following equally weighted
factors:
   (1) The population of the city to the total population of all the
cities in the county.
   (2) The city street mileage to the total street mileage of all the
cities in the county, as determined from the county master plan.
   SEC. 12.    Section 2106.4 of the   Streets
and Highways Code   is amended to read: 
   2106.4.  From funds apportioned to the County of Los Angeles
pursuant to  Sections 2104, 2105, and 2106  
this chapter  , or from other transportation funds available to
the county, or from any combination of those funds, as determined by
the county, the county shall, beginning in the 1996-97 fiscal year,
commence the annual transfer to the Los Angeles County Metropolitan
Transportation Authority of funds in an amount calculated to
amortize, in equal annual installments over a 5-year period, the
amount by which fiscal realignment revenues deposited in the county
general fund exceed fifty million dollars ($50,000,000). The highest
priority for the use of the remaining funds apportioned to the county
pursuant to this chapter shall be for safety and for maintenance of
county facilities in urban areas with the highest backlog of
maintenance and rehabilitation needs.
   SEC. 13.    Section 2107.1 of the   Streets
and Highways Code   is amended to read: 
   2107.1.  Any city or city and county may apply to the United
States Bureau of Census to determine its population. Upon receipt
from the bureau of its determination of population, the city or city
and county may, at its option, file a certified copy of the
determination with the Controller.
   All apportionments  and payments to a city or city and county
 made under  Section 2107   this chapter
 and  all payments  under Section 11005 of the
Revenue and Taxation Code  for any apportionment made
 beginning with the month following the filing of the
determination shall be based upon the population so determined until
such time as a subsequent determination is made by the bureau and a
certified copy is filed by the city or city and county with the
Controller or a certified copy of a subsequent estimate or census
result validated by the Department of Finance is filed with the
Controller as provided in Section 2107.2. For the purposes of this
section, a written or telegraphic certification from the Director of
the Census to the Controller of the determination of population may
be accepted by the Controller in lieu of the filing by the city or
city and county of the certified copy of the determination.
   The cost of any determination by the United States Bureau of
Census or by the Department of Finance is a proper charge against the
city or city and county applying therefor and shall be paid by it to
the bureau or to the department.
   This section does not apply to counties.
   SEC. 14.    Section 2107.2 of the   Streets
and Highways Code   is amended to read: 
   2107.2.  Any city or city and county may apply to the population
research unit of the Department of Finance to estimate its population
or the population of any inhabited territory annexed to the city
subsequent to the last federal or state census validated by the
population research unit of the Department of Finance. The department
may make the estimate if in the opinion of the department there is
available adequate information upon which to base the estimate. The
department may develop or contract for the development of additional
information if, in the opinion of the department, additional
information may make an estimate feasible. Not less than 25 days nor
more than 30 days after the completion of the estimate, the
Department of Finance shall file a certified copy thereof with the
Controller if the estimate is greater than the current certified
population.
   All apportionments and payments to a city or city and county
 under  Section 2107   this chapter 
and  all payments  under Section 11005 of the
Revenue and Taxation Code  for any apportionment 
made beginning with the month following the filing of the estimate
shall be based upon the population so estimated until a subsequent
estimate is made by the department and a certified copy is filed with
the Controller or a subsequent determination is made by the United
States Bureau of the Census and a certified copy is filed by the city
or city and county with the Controller as provided in Section
2107.1.
   The Department of Finance may assess a reasonable charge, not to
exceed the actual cost thereof, for the preparation of population
estimates pursuant to this section, which is a proper charge against
the city or city and county applying therefor. The amount received
shall be deposited in the State Treasury as a reimbursement to be
credited to the appropriation from which the expenditure is made.
   No more than one estimate of its total population shall be filed
each fiscal year for each city or city and county.
   As of May 1, 1988, any population estimate prepared by the
Department of Finance pursuant to Section 2227 of the Revenue and
Taxation Code may be used for all purposes of this section unless a
written request not to certify is received by the department from the
city or city and county within 25 days of completion of the
estimate.
   SEC. 15.    Section 2107.3 of the   Streets
and Highways Code   is amended to read: 
   2107.3.  The incorporation of a new city, or any annexation or
exclusion of territory to or from an existing city, shall be
considered for the purpose of apportionment of funds  to cities
and cities and counties  pursuant to  Section 2107
  this chapter  . The revenue shall be apportioned
among the cities  and cities and counties  monthly as
revenues are received in the Highway Users Tax  Fund
  Account  . Any newly incorporated city or any
increase in population due to annexation shall be included in the
monthly apportionment following such incorporation or annexation.
   In the event of the disincorporation of a city, or in the event
the incorporation of a city is adjudged invalid, any funds
apportioned pursuant to  Section 2107   this
chapter  to  such   that  city, but
 which   that  are unexpended, shall revert
to the Highway Users Tax  Fund   Account 
and shall be reapportioned to all other cities and cities and
counties pursuant to  Section 2107   this
chapter  .
   The Controller shall not be required to reapportion funds
previously apportioned for expenditure in the different cities of the
state by reason of any subsequent incorporation, invalidation of
incorporation, annexation or exclusion of territory.
   SEC. 16.    Section 2107.6 of the   Streets
and Highways Code   is amended to read: 
   2107.6.  The Controller shall deduct annually, from the amount
apportioned pursuant to Section 2107  or subparagraph (B) of
paragraph (6) of subdivision (b) of Section 2103, as applicable 
, the amount identified as applicable to cities in the report
submitted in the preceding fiscal year pursuant to Section 191, and
shall transfer the amount to the State Highway Account.
   SEC. 17.    Section 2109 of the   Streets
and Highways Code   is amended to read: 
   2109.  State highways shall be maintained, constructed, and
improved out of the moneys received in the State Highway Account
under  Section 2108   this chapter  .
Notwithstanding Section 81, the department is not required to
maintain any route, or portion of a route, added after January 1,
1947, until it has been laid out and constructed as a state highway.
   SEC. 18.    Section 2111 of the   Streets
and Highways Code   is amended to read: 
   2111.  Apportionments from the Highway Users Tax  Fund
  Account under this chapter  shall not be made to
any incorporated city the streets of which are not public streets or
which has not held an election of municipal officers within a period
of 10 years preceding the date of such apportionment. Apportionments
heretofore accumulated for expenditure within any such city shall be
reapportioned to all other cities and cities and counties in the
manner provided by  Sections 2106 and 2107, respectively
  this chapter  .
   SEC. 19.    Section 2112 of the   Streets
and Highways Code   is amended to read: 
   2112.  No money apportioned from the Highway Users Tax 
Fund as provided in Section 2106 or 2107  Account to
cities or counties  shall be used for the construction or
improvement of any highway or street if the contract for such
construction or improvement specifies the use of any patented or
proprietary paving material, unless the contract has been awarded to
the lowest responsible bidder therefor after alternate bids have been
called for and opportunity afforded for bids to be submitted for
nonpatented or nonproprietary paving material in competition with an
equal thickness and like design of such patented or proprietary
paving material. This section shall not be deemed nor construed to
prohibit the use of any patented or proprietary paving material in
the maintenance of any highway or street when such highway or street
was constructed of such material and, in the opinion of the body,
board or officer ordering such maintenance, it would be impractical
to use a different paving material for such maintenance.
   SEC. 20.    Section 2113 of the   Streets
and Highways Code   is amended to read: 
   2113.  No apportionment of money from the Highway Users Tax
 Fund as provided in Section 2106 or 2107  
Account  shall be made to a city unless the city has set up by
ordinance a "special gas tax street improvement fund."
   All apportionments of such moneys shall be deposited in the
"special gas tax street improvement fund."
   In making any expenditure a city shall follow the law governing it
in regard to the doing of the particular type of work in cases which
are not exclusively municipal affairs.
   No state officer or employee shall be liable for anything done, or
omitted to be done, by any city in the performance of any work.
   Interest received by a city from the investment of money in its
special gas tax street improvement fund shall be deposited in the
fund and shall be used for street purposes.
   SEC. 21.    Section 2114 of the   Streets
and Highways Code   is amended to read: 
   2114.  Contracts for any construction and improvement projects on
city streets for which funds apportioned  to cities  from
the Highway Users Tax  Fund as provided in Section 2106 or
2107   Account  may be expended during any fiscal
year may be awarded on and after the first day of January preceding
the beginning of the fiscal year.
   SEC. 22.    Section 2115 of the   Streets
and Highways Code   is amended to read: 
   2115.  To permit the accomplishment of major cooperative street or
highway projects in their entirety, the legislative body of a county
or city may authorize the Controller to accumulate moneys accruing
to the county or city over a period of time from the Highway Users
Tax  Fund pursuant to Section 2106 or 2107  
Account  . 
  SECTION 1.    Section 1240.3 is added to the
Education Code, to read:
   1240.3.  (a) For the purposes of Section 1240, for the 2008-09 and
2009-10 fiscal years, sufficient textbooks or instructional
materials include standards-aligned textbooks or instructional
materials, or both, that were adopted prior to July 1, 2008, by the
state board or local educational agency pursuant to statute, unless
those local educational agencies purchased or arranged to purchase
textbooks or instructional materials adopted by the state board after
that date. It is the intent of the Legislature that each local
educational agency provide each pupil with the same state-adopted,
standards-aligned textbook or instructional material as is provided
to every other pupil enrolled in the same grade and same course
offered by the local educational agency.
   (b) Notwithstanding Section 1240 or any other law, for the 2008-09
and 2009-10 fiscal years, a county superintendent of schools, in
making visits to schools as specified in Section 1240, shall
determine the status of sufficient textbooks as defined in
subdivision (a).
   (c) This section shall become inoperative on July 1, 2010, and, as
of January 1, 2011, is repealed, unless a later enacted statute that
is enacted before January 1, 2011, deletes or extends the dates on
which it becomes inoperative and is repealed.  
  SEC. 2.    Section 2558.46 of the Education Code
is amended to read:
   2558.46.  (a) (1) For the 2003-04 fiscal year, the revenue limit
for each county superintendent of schools determined pursuant to this
article shall be reduced by a 1.195 percent deficit factor.
   (2) For the 2004-05 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 0.323 percent deficit factor.
   (3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each county superintendent of schools determined pursuant to this
article shall be reduced further by a 1.826 percent deficit factor.
   (4) For the 2005-06 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced further by a 0.898 percent deficit factor.
   (5) For the 2008-09 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 7.839 percent deficit factor.
   (6) For the 2009-10 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 13.360 percent deficit factor.
   (b) In computing the revenue limit for each county superintendent
of schools for the 2006-07 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2003-04,
2004-05, and 2005-06 fiscal years without being reduced by the
deficit factors specified in subdivision (a).
   (c) In computing the revenue limit for each county superintendent
of schools for the 2010-11 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2009-10
fiscal year without being reduced by the deficit factors specified in
subdivision (a).  
  SEC. 3.    Section 14041.5 of the Education Code
is amended to read:
   14041.5.  (a) Notwithstanding subdivision (a) of Section 14041,
commencing with the 2002-03 fiscal year, warrants for the principal
apportionments for the month of June instead shall be drawn in July
of the same calendar year pursuant to the certification made pursuant
to Section 41335.
   (b) Except as provided in subdivisions (c) and (d), for purposes
of making the computations required by Section 8 of Article XVI of
the California Constitution, the warrants drawn pursuant to
subdivision (a) shall be deemed to be "General Fund revenues
appropriated to school districts," as defined in subdivision (c) of
Section 41202 for the fiscal year in which the warrants are drawn and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B" as defined in subdivision
(e) of Section 41202, for the fiscal year in which the warrants are
drawn.
   (c) For the 2003-04 school year, the amount of apportionments for
revenue limits computed pursuant to Section 42238 from any of the
apportionments made pursuant to Section 14041 that are deemed
"General Fund revenues appropriated for school districts," as defined
in subdivision (c) of Section 41202 for the following fiscal year
and included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B" as defined in subdivision
(e) of Section 41202, for the 2004-05 fiscal year shall be seven
hundred twenty-six million two hundred seventy thousand dollars
($726,270,000). Any amount in excess of seven hundred twenty-six
million two hundred seventy thousand dollars ($726,270,000) that is
apportioned in July of 2004 is deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 for the 2003-04 fiscal year and included within the
"total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B" as defined in subdivision (e) of Section 41202,
for the 2003-04 fiscal year.
   (d) For the 2004-05 school year to the 2007-08 school year,
inclusive, the amount of apportionments for revenue limits computed
pursuant to Section 42238 from any of the apportionments made
pursuant to Section 14041 that are deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 for the following fiscal year and included within the
"total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B" as defined in subdivision (e) of Section 41202,
for the following fiscal year shall be seven hundred fifteen million
one hundred eighteen thousand dollars ($715,118,000). Any amount in
excess of seven hundred fifteen million one hundred eighteen thousand
dollars ($715,118,000) that is apportioned in July of any year is
deemed "General Fund revenues appropriated for school districts," as
defined in subdivision (c) of Section 41202 for the prior fiscal year
and included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B" as defined in subdivision
(e) of Section 41202, for the prior fiscal year.
   (e) For the 2008-09 school year, and each school year thereafter,
the amount of apportionments for revenue limits computed pursuant to
Section 42238 from any of the apportionments made pursuant to Section
14041 that are deemed "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202 for the
following fiscal year and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B" as defined
in subdivision (e) of Section 41202, for the following fiscal year
shall be one billion one hundred one million six hundred fifty-five
thousand dollars ($1,101,655,000). Any amount in excess of one
billion one hundred one million six hundred fifty-five thousand
dollars ($1,101,655,000) that is apportioned in July of any year is
deemed "General Fund revenues appropriated for school districts," as
defined in subdivision (c) of Section 41202 for the prior fiscal year
and included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B" as defined in subdivision
(e) of Section 41202, for the prior fiscal year.  
  SEC. 4.    Section 14041.6 is added to the
Education Code, to read:
   14041.6.  (a) Notwithstanding subdivision (a) of Section 14041, or
any other law, commencing with the 2008-09 fiscal year, warrants for
the principal apportionments for the month of February in the amount
of two billion dollars ($2,000,000,000) instead shall be drawn in
July of the same calendar year pursuant to the certification made
pursuant to Section 41339.
   (b) Except as provided in subdivisions (c) and (e) of Section
41202, for purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the warrants drawn
pursuant to subdivision (a) shall be deemed to be "General Fund
revenues appropriated to school districts," as defined in subdivision
(c) of Section 41202, for the fiscal year in which the warrants are
drawn and included within the "total allocations to school districts
and community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for the fiscal year in which the warrants are
drawn.  
  SEC. 5.    Section 17070.766 is added to the
Education Code, to read:
   17070.766.  Notwithstanding paragraph (2) of subdivision (b) of
Section 17070.75, for the 2008-09, 2009-10, 2010-11, 2011-12, and
2012-13 fiscal years, the board shall require a school district to
deposit into the account established pursuant to paragraph (1) of
subdivision (b) of Section 17070.75 only an amount equal to 1 percent
of the total expenditures by a district from its general fund in the
2008-09, 2009-10, 2010-11, 2011-12, and 2012-13 fiscal years
respectively. A school district may elect to deposit into the account
an amount that is greater than the amount required by the board
pursuant to this section.  
  SEC. 6.   Section 17584.1 of the Education Code is
amended to read:
   17584.1.  (a) The governing board of a school district shall
discuss proposals and plans for expenditure of funds for the deferred
maintenance of school district facilities at a regularly scheduled
public hearing.
   (b) The purposes of this section are to inform the public
regarding the local decisionmaking process relating to the deferred
maintenance of school facilities and to provide a foundation for
local accountability in that regard.
   (c) This section shall become inoperative on July 1, 2013, and, as
of January 1, 2014, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2014, deletes or
extends the dates on which it becomes inoperative and is repealed.
 
  SEC. 7.    Section 17584.1 is added to the
Education Code, to read:
   17584.1.  (a) The governing board of a school district shall
discuss proposals and plans for expenditure of funds for the deferred
maintenance of school district facilities at a regularly scheduled
public hearing.
   (b) In any fiscal year that the school district does not set aside
0.5 percent of its current-year revenue limit average daily
attendance for deferred maintenance, the governing board of a school
district shall submit a report to the Legislature by March 1 of that
year, with copies to the Superintendent, the state board, the
Department of Finance, and the State Allocation Board.
   (c) The report required pursuant to subdivision (b) shall include
all of the following:
   (1) A schedule of the complete school facilities deferred
maintenance needs of the school district for the current fiscal year,
including a schedule of costs per schoolsite and total costs.
   (2) A detailed description of the school district's spending
priorities for the current fiscal year and an explanation of why
those priorities, or any other considerations, have prevented the
school district from setting aside sufficient local funds so as to
permit it to fully fund its deferred maintenance program and, if
eligible, to participate in the state deferred maintenance funding
program as set forth in Section 17584.
   (3) An explanation of the manner in which the governing board of a
school district plans to meet its current-year facilities deferred
maintenance needs without setting aside the funds set forth in
Section 17584.
   (d) Copies of the report shall be made available at each
schoolsite within the school district, and shall be provided to the
public upon request.
   (e) The purposes of this section are to inform the public
regarding the local decisionmaking process relating to the deferred
maintenance of school facilities and to provide a foundation for
local accountability in that regard.
   (f) This section shall become operative on July 1, 2013. 

  SEC. 8.    Section 17592.71 of the Education Code
is amended to read:
   17592.71.  (a) There is hereby established in the State Treasury
the School Facilities Emergency Repair Account. The State Allocation
Board shall administer the account.
   (b) (1) Commencing with the 2005-06 fiscal year, an amount of
moneys shall be transferred in the annual Budget Act from the
Proposition 98 Reversion Account to the School Facilities Emergency
Repair                                                Account,
equaling 50 percent of the unappropriated balance of the Proposition
98 Reversion Account or one hundred million dollars ($100,000,000),
whichever amount is greater. Moneys transferred pursuant to this
subdivision shall be used for the purpose of addressing emergency
facilities needs pursuant to Section 17592.72.
   (2) Notwithstanding paragraph (1), for the 2008-09 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall not exceed one hundred one million
dollars ($101,000,000).
   (3) Notwithstanding paragraph (1), for the 2009-10 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall be zero.
   (c) The Legislature may transfer to the School Facilities
Emergency Repair Account other one-time Proposition 98 funds, except
funds specified pursuant to Section 41207. Donations by private
entities shall be deposited in the account and, for tax purposes, be
treated as otherwise provided by law.
   (d) Funds shall be transferred pursuant to this section until a
total of eight hundred million dollars ($800,000,000) has been
disbursed from the School Facilities Emergency Repair Account.
 
  SEC. 9.    Section 17592.74 is added to the
Education Code, to read:
   17592.74.  Notwithstanding any other law, the funds provided to
school districts from the School Facilities Emergency Repair Account
pursuant to this article for the purpose of emergency repair grants
shall not be used to do either of the following:
   (a) Supplant funds provided to local educational agencies for the
deferred maintenance of school facilities pursuant to Sections 17584
and 17587.
   (b) Be deposited into a school district deferred maintenance fund
for the purposes established pursuant to Section 17582. 

  SEC. 10.    Section 41203.1 of the Education Code
is amended to read:
   41203.1.  (a) For the 1990-91 fiscal year and each fiscal year
thereafter, allocations calculated pursuant to Section 41203 shall be
distributed in accordance with calculations provided in this
section. Notwithstanding Section 41203, and for the purposes of this
section, school districts, community college districts, and direct
elementary and secondary level instructional services provided by the
State of California shall be regarded as separate segments of public
education, and each of these three segments of public education
shall be entitled to receive respective shares of the amount
calculated pursuant to Section 41203 as though the calculation made
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution were to be applied separately to each segment
and the base year for the purposes of this calculation under
paragraph (1) of subdivision (b) of Section 8 of Article XVI of the
California Constitution were based on the 1989-90 fiscal year.
Calculations made pursuant to this subdivision shall be made so that
each segment of public education is entitled to the greater of the
amounts calculated for that segment pursuant to paragraph (1) or (2)
of subdivision (b) of Section 8 of Article XVI of the California
Constitution.
   (b) If the single calculation made pursuant to Section 41203
yields a guaranteed amount of funding that is less than the sum of
the amounts calculated pursuant to subdivision (a), the amount
calculated pursuant to Section 41203 shall be prorated for the three
segments of public education.
   (c) Notwithstanding any other law, this section does not apply to
the 1992-93 to 2009-10 fiscal years, inclusive.  
  SEC. 11.    Section 41207.3 is added to the
Education Code, to read:
   41207.3.  (a) If the Superintendent and the Director of Finance
jointly determine that, for the 2008-09 fiscal year, the state has
applied moneys for the support of school districts and community
college districts in an amount that exceeds the minimum amount
required for that fiscal year pursuant to Section 8 of Article XVI of
the California Constitution, the excess, up to one billion one
hundred million five hundred ninety thousand dollars
($1,100,590,000), shall be deemed, as of June 30 of that fiscal year,
a payment in satisfaction of the outstanding balance of the minimum
funding obligation under that section for the 2002-03 and 2003-04
fiscal years in accordance with the following:
   (1) The first four hundred eighty-three million sixteen thousand
dollars ($483,016,000) in payment of the outstanding balance of the
minimum funding obligation for the 2002-03 fiscal year.
   (2) The next six hundred seventeen million five hundred
seventy-four thousand dollars ($617,574,000) in payment of the
outstanding balance of the minimum funding obligation for the 2003-04
fiscal year.
   (b) For purposes of this section, the outstanding balance of the
minimum funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for a fiscal year is the amount, if any, by which the
amount required to be applied by the state for the support of school
districts and community college districts pursuant to Section 8 of
Article XVI of the California Constitution, including any maintenance
factor that should have been allocated in that fiscal year pursuant
to subdivision (e) of Section 8 of Article XVI, exceeds the amount
applied by the state for the support of school districts and
community college districts for that fiscal year.
   (c) The amounts allocated pursuant to this section shall be
deemed, for purposes of Section 8 of Article XVI of the California
Constitution, to be appropriations made and allocated in the fiscal
year in which the deficiencies resulting in the outstanding balance
were incurred. When the amount determined to be owed for each such
fiscal year is fully allocated pursuant to this subdivision, the data
used in the computations made under this section with regard to the
total amount owed by the state for the support of school districts
and community college districts pursuant to Section 8 of Article XVI
of the California Constitution for that fiscal year, including as
much of the maintenance factor for that fiscal year determined
pursuant to subdivision (d) of Section 8 of Article XVI as has been
allocated as required by subdivision (e) of Section 8 of Article XVI
by virtue of the allocations made under this section, shall be deemed
certified for purposes of Section 41206.
   (d) The amount described in subdivision (a) shall be deemed a
payment in full satisfaction of the amounts owed pursuant to Section
41207.  
  SEC. 12.    Section 42238 of the Education Code is
amended to read:
   42238.  (a) For the 1984-85 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall determine a
revenue limit for each school district in the county pursuant to this
section.
   (b) The base revenue limit for a fiscal year shall be determined
by adding to the base revenue limit for the prior fiscal year the
following amounts:
   (1) The inflation adjustment specified in Section 42238.1.
   (2) For the 1995-96 fiscal year, the equalization adjustment
specified in Section 42238.4.
   (3) For the 1996-97 fiscal year, the equalization adjustments
specified in Sections 42238.41, 42238.42, and 42238.43.
   (4) For the 1985-86 fiscal year, the amount received per unit of
average daily attendance in the 1984-85 fiscal year pursuant to
Section 42238.7.
   (5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount
per unit of average daily attendance received in the prior fiscal
year pursuant to Section 42238.8.
   (6) For the 2004-05 fiscal year, the equalization adjustment
specified in Section 42238.44.
   (7) For the 2006-07 fiscal year, the equalization adjustment
specified in Section 42238.48.
   (8) For the 2011-12 fiscal year, the equalization adjustment
specified in Section 42238.49.
   (c) Except for districts subject to subdivision (d), the base
revenue limit computed pursuant to subdivision (b) shall be
multiplied by the district average daily attendance computed pursuant
to Section 42238.5.
   (d) (1) For districts for which the number of units of average
daily attendance determined pursuant to Section 42238.5 is greater
for the current fiscal year than for the 1982-83 fiscal year, compute
the following amount, in lieu of the amount computed pursuant to
subdivision (c):
   (A) Multiply the base revenue limit computed pursuant to
subdivision (c) by the average daily attendance computed pursuant to
Section 42238.5 for the 1982-83 fiscal year.
   (B) Multiply the lesser of the amount in subdivision (c) or 1.05
times the statewide average base revenue limit per unit of average
daily attendance for districts of similar type for the current fiscal
year by the difference between the average daily attendance computed
pursuant to Section 42238.5 for the current and 1982-83 fiscal
years.
   (C) Add the amounts in subparagraphs (A) and (B).
   (2) This subdivision shall become inoperative on July 1, 1998.
   (e) For districts electing to compute units of average daily
attendance pursuant to paragraph (2) of subdivision (a) of Section
42238.5, the amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed in subdivision
(c) or (d), as appropriate.
   (f) For the 1984-85 fiscal year only, the county superintendent
shall reduce the total revenue limit computed in this section by the
amount of the decreased employer contributions to the Public
Employees' Retirement System resulting from enactment of Chapter 330
of the Statutes of 1982, offset by any increase in those
contributions, as of the 1983-84 fiscal year, resulting from
subsequent changes in employer contribution rates.
   (g) The reduction required by subdivision (f) shall be calculated
as follows:
   (1) Determine the amount of employer contributions that would have
been made in the 1983-84 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes of
1982 was in effect during the 1983-84 fiscal year.
   (2) Subtract from the amount determined in paragraph (1) the
greater of subparagraph (A) or (B):
   (A) The amount of employer contributions that would have been made
in the 1983-84 fiscal year if the applicable Public Employees'
Retirement System employer contribution rate in effect immediately
after the enactment of Chapter 330 of the Statutes of 1982 was in
effect during the 1983-84 fiscal year.
   (B) The actual amount of employer contributions made to the Public
Employees' Retirement System in the 1983-84 fiscal year.
   (3) For purposes of this subdivision, employer contributions to
the Public Employees' Retirement System for either of the following
shall be excluded from the calculation specified above:
   (A) Positions supported totally by federal funds that were subject
to supplanting restrictions.
   (B) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by any single
educational agency, from a revenue source determined on the basis of
equity to be properly excludable from the provisions of this
subdivision by the Superintendent with the approval of the Director
of Finance.
   (4) For accounting purposes, the reduction made by this
subdivision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent.
   (h) The Superintendent shall apportion to each school district the
amount determined in this section less the sum of:
   (1) The district's property tax revenue received pursuant to
Chapter 3 (commencing with Section 75) and Chapter 6 (commencing with
Section 95) of Part 0.5 of the Revenue and Taxation Code.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of the Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), except for any amount received
pursuant to Section 33401 or 33676 of the Health and Safety Code that
is used for land acquisition, facility construction, reconstruction,
or remodeling, or deferred maintenance, except for any amount
received pursuant to Section 33492.15, paragraph (4) of subdivision
(a) of Section 33607.5, or Section 33607.7 of the Health and Safety
Code that is allocated exclusively for educational facilities.
   (7) For a unified school district, other than a unified school
district that has converted all of its schools to charter status
pursuant to Section 47606, the amount of statewide average
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges, as computed
by the department pursuant to Section 47633, multiplied by the
average daily attendance, in corresponding grade level ranges, of any
pupils who attend charter schools funded pursuant to Chapter 6
(commencing with Section 47630) of Part 26.8 for which the district
is the sponsoring local educational agency, as defined in Section
47632, and who reside in and would otherwise have been eligible to
attend a noncharter school of the district.
   (i) A transfer of seventh and eighth grade pupils between an
elementary school district and a high school district shall not
result in the receiving district receiving a revenue limit
apportionment for those pupils that exceeds 105 percent of the
statewide average revenue limit for the type and size of the
receiving school district.  
  SEC. 13.    Section 42238.49 is added to the
Education Code, to immediately follow Section 42238.48, to read:
   42238.49.  (a) (1) For the 2011-12 fiscal year, the Superintendent
shall compute an equalization adjustment for each school district,
so that the 2010-11 base revenue limit per unit of average daily
attendance of a school district is not less than the 2010-11 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).
   (2) For purposes of this section, the base revenue limit shall not
include any amounts attributable to Section 45023.4, 46200, or
46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  District                          ADA
Elementary ..................... less than 101
Elementary ..................... more than 100
High School .................... less than 301
High School .................... more than 300
Unified ........................ less than 1,501
Unified ........................ more than 1,500


   (c) The Superintendent shall compute a revenue limit equalization
adjustment for each school district's base revenue limit per unit of
average daily attendance as follows:
   (1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the revenue limit for the 2011-12 fiscal year of a school district.
   (2) Divide the amount appropriated from the Supplemental Education
Payment Account for purposes of this section for the 2011-12 fiscal
year by the statewide sum of the amounts computed pursuant to
paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (a) by the amount computed pursuant
to paragraph (2).
   (d) (1) For the purposes of this section, the 2010-11 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2010-11 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
of determining the size of a school district pursuant to subdivision
(b), county superintendents of schools, in conjunction with the
Superintendent, shall use school district revenue limit average daily
attendance for the 2010-11 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
   (2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent shall include units
of average daily attendance of any charter school for which the
school district is the sponsoring local educational agency.
   (3) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent shall count all charter school
average daily attendance toward the average daily attendance of the
school district that is the sponsoring local educational agency.
 
  SEC. 14.    Section 42238.146 of the Education
Code is amended to read:
   42238.146.  (a) (1) For the 2003-04 fiscal year, the revenue limit
for each school district determined pursuant to this article shall
be reduced by a 1.198 percent deficit factor.
   (2) For the 2004-05 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.323 percent deficit factor.
   (3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each school district determined pursuant to this article shall be
further reduced by a 1.826 percent deficit factor.
   (4) For the 2005-06 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.892 percent deficit factor.
   (5) For the 2008-09 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
7.844 percent deficit factor.
   (6) For the 2009-10 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
13.094 percent deficit factor.
   (b) In computing the revenue limit for each school district for
the 2006-07 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2003-04, 2004-05, and 2005-06 fiscal
years without being reduced by the deficit factors specified in
subdivision (a).
   (c) In computing the revenue limit for each school district for
the 2010-11 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2009-10 fiscal year without being reduced
by the deficit factors specified in subdivision (a). 

  SEC. 15.    Section 42605 is added to the
Education Code, to read:
   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e), for the 2008-09 fiscal year
to the 2012-13 fiscal year, inclusive, school districts, charter
schools, and county offices of education may use funding received,
pursuant to subdivision (b), from any of these items listed in
paragraph (2) that are contained in an annual Budget Act, for any
educational purpose:
   (2) 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-122-0001,
6110-123-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001.
   (b) For the 2009-10 fiscal year to the 2012-13 fiscal year,
inclusive, the Superintendent shall apportion from the amounts
provided in the annual Budget Act for the items enumerated in
paragraph (2) of subdivision (a), an amount to a school district,
charter school, and county office of education based on the same
relative proportion that the local education agency received in the
2008-09 fiscal year for the programs funded through the items
enumerated in paragraph (2) of subdivision (a). A school district
that receives funding on behalf of a charter school pursuant to
Sections 47634.1 and 47651 shall continue to distribute the funds to
those charter schools based on the amounts distributed in the 2008-09
fiscal year, and shall adjust those amounts as specified in this
section. The amounts allocated shall be adjusted for any greater or
lesser amount appropriated for the items enumerated in paragraph (2)
of subdivision (a).
   (c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
   (2) As a condition of receipt of funds the governing board of the
school district or board of the county office of education, as
appropriate, at a regularly scheduled open public hearing shall take
testimony from the public, discuss, and approve or disapprove the
proposed use of funding.
   (d) For the 2008-09 fiscal year to the 2012-13 fiscal year,
inclusive, local education agencies that use the flexibility
provision of the section shall be deemed to be in compliance with the
program and funding requirements contained in statutory, regulatory,
and provisional language, associated with the items enumerated in
subdivision (a).
   (e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
   (1) For Items 6110-105-0001 and 6110-156-0001, the amount
authorized for flexibility shall exclude the funding provided for
instruction of CalWORKs eligible students pursuant to schedules (2)
and (3), and provisions 2 and 4.
   (2) (A) Any instructional materials purchased by a local education
agency shall be the materials adopted by the state board for
kindergarten and grades 1 to 8, inclusive, and for grades 9 to 12,
inclusive, the materials purchased shall be aligned with state
standards as defined by Section 60605, and shall also meet the
reporting and sufficiency requirements contained in Section 60119.
   (B) For purposes of this section, "sufficiency" means that each
pupil has sufficient textbooks and instructional materials in the
four core areas as defined by Section 60119, and that all pupils
within the local education agency who are enrolled in the same course
shall have identical textbooks and instructional materials.
   (3) For Item 6110-195-0001, the item shall exclude monies that are
required to fund awards for teachers that have previously met
                                      the requirements necessary to
obtain these awards, until the award is paid in full.
   (4) As a condition of exercising the authority conferred on local
educational agencies to transfer funds to their general funds
pursuant to subdivision (a), both of the following requirements shall
be met:
   (A) The governing board of the school district, or the county
board of education, as appropriate, at a regularly scheduled open
public hearing, shall take testimony from the public, discuss, and
approve each transfer and the proposed use of funding.
   (B) In the existing Standardized Account Code Structure (SACS)
reporting process, a local educational agency shall report the
amounts transferred pursuant to this section by using the appropriate
program code for which these funds were expended. The State
Department of Education shall collect and provide this information to
the Department of Finance and to the appropriate policy and budget
committees of the Legislature by February 28, 2010.
   (5) For Item 6110-266-0001, a county office of education shall
conduct at least one site visit to each of the required schoolsites
pursuant to Section 1240.  
  SEC. 16.    Section 52124 of the Education Code,
as amended by Section 1 of Chapter 515 of the Statutes of 2008, is
amended to read:
   52124.  (a) A school district that implements a class size
reduction program pursuant to this chapter is subject to this
section.
   (b) A school district may establish a program to reduce class size
in kindergarten and grades 1 to 3, inclusive, and that program shall
be implemented at each schoolsite according to the following
priorities:
   (1) If only one grade level is reduced at a schoolsite, the grade
level shall be grade 1.
   (2) If only two grade levels are reduced at a schoolsite, the
grade levels shall be grades 1 and 2.
   (3) If three grade levels are reduced at a schoolsite, then those
grade levels shall be kindergarten and grades 1 and 2 or grades 1 to
3, inclusive. Priority shall be given to the reduction of class sizes
in grades 1 and 2 before the class sizes of kindergarten or grade 3
are reduced.
   (4) If four grade levels are reduced at a schoolsite, then those
grade levels shall be kindergarten and grades 1 to 3, inclusive.
First priority shall be given to the reduction of class sizes in
grades 1 and 2, and second priority shall be given to the reduction
of class size in kindergarten and grade 3. This paragraph shall be
operative only in those fiscal years for which funds are appropriated
expressly for the purposes of this paragraph.
   (c) It is the intent of the Legislature to continue to permit the
use of combination classes of more than one grade level to the extent
that school districts are otherwise permitted to use that
instructional strategy. However, a school district that uses a
combination class in a class for which funding is received pursuant
to this chapter shall not claim funding pursuant to this chapter if
the total number of pupils in the combination class, regardless of
grade level, exceeds 20 pupils per certificated teacher assigned to
provide direct instructional services.
   (d) The governing board of a school district shall certify to the
Superintendent that it has met the requirements of this section in
implementing its class size reduction program. If a school district
receives funding pursuant to this chapter but has not implemented its
class size reduction program for all grades and classes for which it
received funding pursuant to this chapter, the Superintendent shall
notify the Controller and the school district in writing and the
Controller shall deduct an amount equal to the amount received by the
school district under this chapter for each class that the school
district failed to reduce to a class size of 20 or fewer pupils from
the next principal apportionment or apportionments of state funds to
the district, other than basic aid apportionments required by Section
6 of Article IX of the California Constitution.
   (e) Except for a school district participating pursuant to
subdivision (h) of Section 52122, and except as set forth in Section
52124.3, the amount deducted pursuant to subdivision (d) shall be
adjusted as follows:
   (1) Twenty percent of the amount to which the district would
otherwise be eligible for each class for which the annual enrollment
determined pursuant to Section 52124.5 is greater than or equal to
20.5 but less than 21.0.
   (2) Forty percent of the amount to which the district would
otherwise be eligible for each class for which the annual average
enrollment determined pursuant to Section 52124.5 is greater than or
equal to 21.0 but less than 21.5.
   (3) Eighty percent of the amount to which the district would
otherwise be eligible for each class for which the annual average
enrollment determined pursuant to Section 52124.5 is greater than or
equal to 21.5 but less than 21.9.
   (4) The amount deducted pursuant to subdivision (d) for each class
for which the annual average enrollment determined pursuant to
Section 52124.5 is greater than or equal to 21.9 shall be the amount
of funding the district received for the class pursuant to this
chapter.
   (f) Notwithstanding any other provision of this chapter, a school
district located in the County of Los Angeles, Riverside, San
Bernardino, San Diego, or Ventura may claim funding pursuant to this
chapter for the 2003-04 school year based on enrollment counts before
the October 2003 fires, in classes for which the class size
reduction program is implemented, if the following criteria are met:
   (1) The school district submits to the Superintendent a "Request
for Allowance of Attendance because of Emergency Conditions" pursuant
to Section 46392 and the emergency conditions were caused by the
October 2003 fires.
   (2) The school district certifies that it suffered a loss of
enrollment in classes in which the class size reduction program is
implemented and this loss of enrollment is due to the October 2003
fires and would result in a decrease in funding that the district
receives pursuant to this chapter.
   (g) This section shall become inoperative on July 1, 2014, and as
of January 1, 2015, is repealed, unless a later enacted statute that
is enacted before January 1, 2015, deletes or extends the dates on
which it becomes inoperative or is repealed.  
  SEC. 17.    Section 52124.3 is added to the
Education Code, to read:
   52124.3.  (a) For the 2008-09, 2009-10, 2010-11, and 2011-12
fiscal years only, the amounts deducted pursuant to subdivision (d)
of Section 52124 shall be as follows:
   (1) Five percent of the amount to which the school district would
otherwise be eligible for each class for which the annual enrollment
determined pursuant to Section 52124.5 is greater than or equal to
20.5 but less than 21.5.
   (2) Ten percent of the amount to which the school district would
otherwise be eligible for each class for which the annual average
enrollment determined pursuant to Section 52124.5 is greater than or
equal to 21.5 but less than 22.5.
   (3) Fifteen percent of the amount to which the school district
would otherwise be eligible for each class for which the annual
average enrollment determined pursuant to Section 52124.5 is greater
than or equal to 22.5 but less than 23.0.
   (4) Twenty percent of the amount to which the school district
would otherwise be eligible for each class for which the annual
average enrollment determined pursuant to Section 52124.5 is greater
than or equal to 23.0 but less than 25.0.
   (5) Thirty percent of the amount to which the school district
would otherwise be eligible for each class for which the annual
average enrollment determined pursuant to Section 52124.5 is greater
than or equal to 25.0.
   (b) A local educational agency is eligible to receive funding
pursuant to this section only if it was participating in the K-3
Class Size Reduction Program as of December 10, 2008. An eligible
local educational agency may only receive funding for the grade level
or levels for which it had applied to receive funding as of December
10, 2008.  
  SEC. 18.    Section 60119 of the Education Code is
amended to read:
   60119.  (a) In order to be eligible to receive funds available for
the purposes of this article, the governing board of a school
district shall take the following actions:
   (1) (A) The governing board shall hold a public hearing or
hearings at which the governing board shall encourage participation
by parents, teachers, members of the community interested in the
affairs of the school district, and bargaining unit leaders, and
shall make a determination, through a resolution, as to whether each
pupil in each school in the district has sufficient textbooks or
instructional materials, or both, that are aligned to the content
standards adopted pursuant to Section 60605 in each of the following
subjects, as appropriate, that are consistent with the content and
cycles of the curriculum framework adopted by the state board:
   (i) Mathematics.
   (ii) Science.
   (iii) History-social science.
   (iv) English/language arts, including the English language
development component of an adopted program.
   (B) The public hearing shall take place on or before the end of
the eighth week from the first day pupils attend school for that
year. A school district that operates schools on a multitrack,
year-round calendar shall hold the hearing on or before the end of
the eighth week from the first day pupils attend school for that year
on any tracks that begin a school year in August or September. For
purposes of the 2004-05 fiscal year only, the governing board of a
school district shall make a diligent effort to hold a public hearing
pursuant to this section on or before December 1, 2004.
   (C) As part of the hearing required pursuant to this section, the
governing board also shall make a written determination as to whether
each pupil enrolled in a foreign language or health course has
sufficient textbooks or instructional materials that are consistent
with the content and cycles of the curriculum frameworks adopted by
the state board for those subjects. The governing board also shall
determine the availability of laboratory science equipment as
applicable to science laboratory courses offered in grades 9 to 12,
inclusive. The provision of the textbooks, instructional materials,
or science equipment specified in this subparagraph is not a
condition of receipt of funds provided by this subdivision.
   (2) (A) If the governing board determines that there are
insufficient textbooks or instructional materials, or both, the
governing board shall provide information to classroom teachers and
to the public setting forth, in the resolution, for each school in
which an insufficiency exists, the percentage of pupils who lack
sufficient standards-aligned textbooks or instructional materials in
each subject area and the reasons that each pupil does not have
sufficient textbooks or instructional materials, or both, and take
any action, except an action that would require reimbursement by the
Commission on State Mandates, to ensure that each pupil has
sufficient textbooks or instructional materials, or both, within two
months of the beginning of the school year in which the determination
is made.
   (B) In carrying out subparagraph (A), the governing board may use
money in any of the following funds:
   (i) Any funds available for textbooks or instructional materials,
or both, from categorical programs, including any funds allocated to
school districts that have been appropriated in the annual Budget
Act.
   (ii) Any funds of the school district that are in excess of the
amount available for each pupil during the prior fiscal year to
purchase textbooks or instructional materials, or both.
   (iii) Any other funds available to the school district for
textbooks or instructional materials, or both.
   (b) The governing board shall provide 10 days' notice of the
public hearing or hearings set forth in subdivision (a). The notice
shall contain the time, place, and purpose of the hearing and shall
be posted in three public places in the school district. The hearing
shall be held at a time that will encourage the attendance of
teachers and parents and guardians of pupils who attend the schools
in the district and shall not take place during or immediately
following school hours.
   (c) (1) For purposes of this section, "sufficient textbooks or
instructional materials" means that each pupil, including English
learners, has a standards-aligned textbook or instructional
materials, or both, to use in class and to take home. This paragraph
does not require two sets of textbooks or instructional materials for
each pupil.
   (2) Sufficient textbooks or instructional materials as defined in
paragraph (1), does not include photocopied sheets from only a
portion of a textbook or instructional materials copied to address a
shortage.
   (d) The governing board of a school district that receives funds
for instructional materials from any state source is subject to the
requirements of this section.  
  SEC. 19.    Section 60422.1 is added to the
Education Code, to read:
   60422.1.  (a) Notwithstanding subdivision (i) of Section 60200,
Section 60422, or any other provision of law, for the 2008-09 and
2009-10 fiscal years, the governing board of a school district is not
required to provide pupils with instructional materials by a
specified period of time following adoption of those materials by the
state board.
   (b) Notwithstanding subdivision (a), this section does not relieve
school districts of their obligations under the law to provide every
pupil with standards-aligned textbooks or instructional materials,
as provided in Section 60119.
   (c) This section does not relieve school districts of the
obligation to hold a public hearing or hearings pursuant to
subparagraphs (A) and (B) of paragraph (1) of subdivision (a) of
Section 60119.
   (d) This section shall become inoperative on July 1, 2010, and, as
of January 1, 2011, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2011, deletes or
extends the dates on which it becomes inoperative and is repealed.
 
  SEC. 20.    Section 92612.5 is added to the
Education Code, to read:
   92612.5.  It is the intent of the Legislature that no new General
Fund augmentation be made available for contributions to the
University of California Retirement Plan.  
  SEC. 21.    Section 33 of Chapter 757 of the
Statutes of 2008 is repealed.  
  SEC. 22.    Section 34 of Chapter 757 of the
Statutes of 2008 is amended to read:
  Sec. 34.  (a) The sum of nine hundred five million seven hundred
thousand dollars ($905,700,000) is hereby appropriated from the
General Fund to the State Department of Education. This appropriation
reflects the portions of the February 2009 principal apportionment
and the 2009 payment for the class size reduction, as set forth in
Chapter 6.10 (commencing with Section 52120) of Part 28 of Division 4
of the Education Code, for kindergarten and grades 1 to 3,
inclusive, and the June 2009 principal apportionment that are to be
deferred until July 2009 and attributed to the 2009-10 fiscal year.
Notwithstanding any other law, the department shall encumber the
funds appropriated in this section by July 31, 2009. It is the intent
of the Legislature that, by extending the encumbrance authority for
the funds appropriated in this section to July 31, 2009, the funds
will be treated in a manner consistent with Section 1.80 of the
Budget Act of 2008. The appropriation is made in accordance with the
following schedule:
   (1) Six million two hundred twenty-seven thousand dollars
($6,227,000) for apprenticeship programs to be expended consistent
with the requirements specified in Item 6110-103-0001 of Section 2.00
of the Budget Act of 2008.
   (2) Ninety million one hundred seventeen thousand dollars
($90,117,000) for supplemental instruction to be expended consistent
with the requirements specified in Item 6110-104-0001 of Section 2.00
of the Budget Act of 2008. Of the amount appropriated by this
paragraph, fifty-one million sixty-one thousand dollars ($51,061,000)
shall be expended consistent with Schedule (1) of Item 6110-104-0001
of Section 2.00 of the Budget Act of 2008, twelve million three
hundred thirty thousand dollars ($12,330,000) shall be expended
consistent with Schedule (2) of that item, four million six hundred
ninety thousand dollars ($4,690,000) shall be expended consistent
with Schedule (3) of that item, and twenty-two million thirty-six
thousand dollars ($22,036,000) shall be expended consistent with
Schedule (4) of that item.
   (3) Thirty-nine million six hundred thirty thousand dollars
($39,630,000) for regional occupational centers and programs to be
expended consistent with the requirements specified in Schedule (1)
of Item 6110-105-0001 of Section 2.00 of the Budget Act of 2008.
   (4) Four million two hundred ninety-four thousand dollars
($4,294,000) for the Gifted and Talented Pupil Program to be expended
consistent with the requirements specified in Item 6110-124-0001 of
Section 2.00 of the Budget Act of 2008.
   (5) Forty-five million eight hundred ninety-six thousand dollars
($45,896,000) for adult education to be expended consistent with the
requirements specified in Schedule (1) of Item 6110-156-0001 of
Section 2.00 of the Budget Act of 2008.
   (6) Four million seven hundred fifty-one thousand dollars
($4,751,000) for community day schools to be expended consistent with
the requirements specified in Item 6110-190-0001 of Section 2.00 of
the Budget Act of 2008.
   (7) Five million nine hundred forty-seven thousand dollars
($5,947,000) for categorical block grants for charter schools to be
expended consistent with the requirements specified in Item
6110-211-0001 of Section 2.00 of the Budget Act of 2008.
   (8) Thirty-eight million seven hundred twenty thousand dollars
($38,720,000) for the School Safety Block Grant to be expended
consistent with the requirements specified in Schedule (1) of Item
6110-228-0001 of Section 2.00 of the Budget Act of 2008.
   (9) Five hundred seventy million dollars ($570,000,000) for class
size reduction in kindergarten and grades 1 to 3, inclusive, to be
expended consistent with the requirements specified in Item
6110-234-0001 of Section 2.00 of the Budget Act of 2008.
   (10) One hundred million one hundred eighteen thousand dollars
($100,118,000) for the Targeted Instructional Improvement Grant
Program to be expended consistent with the requirements specified in
Item 6110-246-0001 of Section 2.00 of the Budget Act of 2008.
   (b) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2009-10 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2009-10 fiscal year.  
  SEC. 23.    Section 35 of Chapter 757 of the
Statutes of 2008 is amended to read:
  Sec. 35.  (a) The sum of five hundred forty million dollars
($540,000,000) is hereby appropriated from the General Fund to the
Board of Governors of the California Community Colleges for
apportionments to community college districts, for expenditure during
the 2009-10 fiscal year, to be expended in accordance with Schedule
(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2008.
   (b) The disbursal of funds appropriated in subdivision (a) shall
be deferred until July of the 2009-10 fiscal year. This appropriation
and deferment represent one hundred fifteen million dollars
($115,000,000) of the January apportionment to community college
districts, one hundred fifteen million dollars ($115,000,000) of the
February apportionment to community college districts, fifty-five
million dollars ($55,000,000) of the March apportionment to community
college districts and fifty-five million dollars ($55,000,000) of
the April apportionment to community college districts, and two
hundred million dollars ($200,000,000) of the June apportionment to
community college districts.
   (c) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202 of the Education Code,
for the 2009-10 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2009-10 fiscal year.  
  SEC. 24.    Section 37 of Chapter 757 of the
Statutes of 2008 is amended to read:
  Sec. 37.  (a) Notwithstanding Sections 42238.1 and 42238.15 of the
Education Code or any other provision of law, the cost-of-living
adjustment for Items 6110-104-0001, 6110-105-0001, 6110-119-0001,
6110-122-0001, 6110-124-0001, 6110-128-0001, 6110-150-0001,
6110-156-0001, 6110-158-0001, 6110-161-0001, 6110-167-0001,
6110-181-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-196-0001, 6110-203-0001, 6110-209,0001, 6110-211-0001,
6110-224-0001, 6110-232-0001, 6110-234-0001, 6110-244-0001, and
6110-246-0001 of the Budget Act of 2008 (Chapters 268 and 269 of the
Statutes of 2008) is zero percent for the 2008-09 fiscal year. All
funds appropriated in the Budget Act of 2008 in the items identified
in this section are in lieu of the amounts that would otherwise be
appropriated pursuant to any other provision of law.
   (b) Notwithstanding Section 42238.1 of the Education Code or any
other provision of law, for purposes of Section 48664 of the
Education Code the cost-of-living adjustment is zero percent for the
2008-09 fiscal year.  
  SEC. 25.    Item 6110-111-0001 of Section 2.00 of
the Budget Act of 2008 is repealed.  
  SEC. 26.    Item 6110-111-0046 is added to Section
2.00 of the Budget Act of 2008, to read:
6110-111-0046--For local assistance,
Department of Education (from the Public
Transportation Account, State Transportation
Fund) Program 10-Instruction, for transfer
to Section A of the State School Fund, Home
to School Transportation, pursuant to
Article 10 (commencing with Section 41850)
of Chapter 5 of Part 24 of Division 3 of      198,446,0
Title 2 of the Education Code................        00
      Provisions:
      1.      Notwithstanding any other
              provision of law, these funds
              shall be     used to provide
              mass transportation services
              for pupils enrolled in school
              districts that receive these
              funds.


  SEC. 27.   Item 6110-111-3116 is added to Section
2.00 of the Budget Act of 2008, to read:

6110-111-3116--For local assistance,
Department of Education (from the Mass
Transportation Fund) Program 10-
Instruction, for transfer to Section A of
the State School Fund, Home to School
Transportation, pursuant to Article 10
(commencing with Section 41850) of
Chapter 5 of Part 24 of Division 3 of
Title 2 of the Education Code, and Small
School District Transportation, pursuant
to Article 4.5 (commencing with Section
42290) of Chapter 7 of Part 24 of
Division 3 of Title 2 of the Education
Code...................................... 420,268,000
    Schedule:
    (1)   10.10.006-Pupil
          Transportation......  414,182,000
    (2)   10.10.008-Small
          School District Bus
          Replacement.........    6,086,000
    Provisions:
    1.    Of the funds appropriated in
          this item, $0 is for the purpose
          of providing a cost-of-living
          adjustment.
    2.    Notwithstanding any other
          provision of law, these funds
          shall be used to provide mass
          transportation services for
          pupils enrolled in school
          districts that receive these
          funds.


  SEC. 28.    Item 6110-196-0001 of Section 2.00 of
the Budget Act of 2008 is amended to read:
6110-196-0001--For local assistance,
Department of Education (Proposition 98),
for transfer by the Controller to Section
A of the State School Fund, for
allocation by the Superintendent of
Public Instruction to school districts,
county offices of education, and other
agencies for the purposes of Proposition
98 educational programs funded in this
item, in lieu of the amount that
otherwise would be appropriated pursuant
to any other statute...................... 1,675,043,000
   Schedule:
   (1)  30.10.010-Special
        Program, Child
        Development, Preschool     426,327,
        Education.................      000
   (1.5 30.10.020-Child Care       1,775,31
   )    Services..................    0,000
        (a)  30.10.020.
             001-
             Special
             Program,
             Child
             Developmen
             t,
             General
             Child
             Developmen
             t          773,796,00
             Programs..          0
        (c)  30.10.020.
             004-
             Special
             Program,
             Child
             Developmen
             t,
             Migrant
             Day Care.. 35,966,000
        (d)  30.10.020.
             007-
             Special
             Program,
             Child
             Developmen
             t,
             Alternativ
             e Payment  257,037,00
             Program...          0
        (e)  30.10.020.
             011-
             Special
             Program,
             Child
             Developmen
             t,
             Alternativ
             e Payment
             Program--  342,960,00
             Stage 2...          0
        (f)  30.10.020.
             012-
             Special
             Program,
             Child
             Developmen
             t,
             Alternativ
             e Payment
             Program--
             Stage 3    230,204,00
             Setaside..          0
        (g)  30.10.020.
             008-
             Special
             Program,
             Child
             Developmen
             t,
             Resource
             and
             Referral.. 19,438,000
        (i)  30.10.020.
             015-
             Special
             Program,
             Child
             Developmen
             t,
             Extended
             Day Care.. 31,553,000
        (j)  30.10.020.
             096-
             Special
             Program,
             Child
             Developmen
             t,
             Allowance
             for
             Handicappe
             d.........  1,997,000
        (k)  30.10.020.
             106-
             Special
             Program,
             Child
             Developmen
             t,
             California
             Child
             Care
             Initiative
             ..........    250,000
        (l)  30.10.020.
             901-
             Special
             Program,
             Child
             Developmen
             t,
             Quality
             Improvemen
             t......... 67,572,000
        (m)  30.10.020.
             911-
             Special
             Program,
             Child
             Developmen
             t,
             Centralize
             d
             Eligibilit
             y List....  7,900,000
        (n)  30.10.020.
             920-
             Special
             Program,
             Child
             Developmen
             t, Local
             Planning
             Councils..  6,637,000
   (3)  30.10.020.908-Special
        Program, Child
        Development, Cost-of-
        Living Adjustments........        0
   (4)  30.10.020.909-Special
        Program, Child
        Development, Growth        10,917,0
        Adjustments...............       00
   (5)  Amount payable from the
        Federal Trust Fund (Item   -537,511
        6110-196-0890)............     ,000
   Provisions:
   1.   Notwithstanding Section 8278 of
        the Education Code, funds
        available for expenditure pursuant
        to that section shall be expended
        in the current fiscal year
        pursuant to the following schedule:
        (a)  $4,000,000 or whatever lesser
             or greater amount is
             necessary for accounts
             payable pursuant to paragraph
             (1) of subdivision (b) of
             Section 8278 of the Education
             Code.
        (b)  $22,963,000 shall be
             available for CalWORKs Stage
             3 child care.
        (c)  The Controller shall
             establish an account entitled
             ""Section 8278 Expenditures
             in 2007'' in Item 6110-196-
             0001, Program 30.10.060. Any
             unexpended General Fund
             balances as of June 30, 2008,
             or subsequent abatements,
             from those amounts listed in
             Schedules (1), (1.5)(a),
             (1.5)(c), (1.5)(d), (1.5)(g),
             (1.5)(i), (1.5)(j), (1.5)(k),
             (1.5)(l), and (1.5)(n), that
             are available pursuant to
             Section 8278 of the Education
             Code, shall be transferred to
             the account for the purpose
             of making expenditures
             pursuant to that section and
             as specified in this
             provision.
   2.   (a)  Notwithstanding any other
             provision of law, alternative
             payment child care programs
             shall be subject to the rate
             ceilings established in the
             Regional Market Rate Survey
             of California child care and
             development providers for
             provider payments. When
             approved pursuant to Section
             8447 of the Education Code,
             any changes to the market
             rate limits, adjustment
             factors, or regions shall be
             utilized by the State
             Department of Education and
             the State Department of
             Social Services in various
             programs under the
             jurisdiction of either
             department.
        (b)  Notwithstanding any other
             provision of law, the funds
             appropriated in this item for
             the cost of licensed child
             care services provided
             through alternative payment
             or voucher programs,
             including those provided
             under Article 3 (commencing
             with Section 8220) and
             Article 15.5 (commencing with
             Section 8350) of Chapter 2 of
             Part 6 of Division 1 of Title
             1 of the Education Code,
             shall be used only to
             reimburse child care costs up
             to the 85th percentile of the
             rates charged by providers
             offering the same type of
             child care for the same age
             child in that region based on
             the 2005 regional market rate
             survey. Notwithstanding
             Section 8357 of the Education
             Code, it is the intent of the
             Legislature to consider new
             rate limits based on the 2007
             regional market rate survey
             data for the 2009-10 fiscal
             year.
   3.   Of the amount appropriated in
        Schedule (1), $50,000,000 is
        available for Prekindergarten and
        Family Literacy preschool programs
        pursuant to Chapter 211 of the
        Statutes of 2006. Of the amount
        appropriated in Schedule (1),
        $5,000,000 is available for the
        provision of wraparound care to
        children enrolled in state
        preschool programs. The
        Superintendent of Public
        Instruction shall assign priority
        for these funds to children
        enrolled in prekindergarten and
        family literacy programs
        authorized by Section 8238.4 of
        the Education Code.
   4.   Funds in Schedule (1.5)(l) shall
        be reserved for activities to
        improve the quality and
        availability of child care,
        pursuant to the following:
        (a)  $2,014,056 is for the
             schoolage care and resource
             and referral earmark.
        (b)  $11,359,176 is for the infant
             and toddler earmark and shall
             be used for increasing the
             supply of quality child care
             for infants and toddlers.
        (c)  $7,237,000 in one-time
             federal funding is available
             for use in the 2008-09 fiscal
             year. Of that amount,
             $200,000 shall be used for
             Trustline registration
             workload (Chapter 3.35
             (commencing with Section
             1596.60) of Division 2 of the
             Health and Safety Code). The
             remaining funds shall be used
             for child care and
             development quality
             expenditures identified by
             the State Department of
             Education (SDE) and approved
             by the Department of Finance.
        (d)  From the remaining funds in
             Schedule (1.5)(l), the
             following amounts shall be
             allocated for the following
             purposes: $4,000,000 to train
             former CalWORKs recipients as
             child care teachers,
             $2,700,000 for contracting
             with the State Department of
             Social Services (DSS) for
             increased inspections of
             child care facilities,
             $1,000,000 for Trustline
             registration workload
             (Chapter 3.35 (commencing
             with Section 1596.60)  of
             Division 2 of the Health and
             Safety Code), $500,000 for
             health and safety training
             for licensed and exempt child
             care providers, $300,000 for
             the Health Hotline, and
             $300,000 to implement a
             technical assistance program
             to child care providers in
             accessing financing for
             renovation, expansion, or
             construction of child care
             facilities.
   5.   Of the amount appropriated in
        Schedule (1.5)(l), $15,000,000
        shall be for child care worker
        recruitment and retention programs
        pursuant to Section 8279.7 of the
        Education Code, and $320,000 shall
        be for the Child Development
        Training Consortium.
   6.   (a)  The State Department of
             Education (SDE) shall conduct
             monthly analyses of CalWORKs
             Stage 2 and Stage 3 caseloads
             and expenditures and adjust
             agency contract maximum
             reimbursement amounts and
             allocations as necessary to
             ensure funds are distributed
             proportionally to need. The
             SDE shall share monthly
             caseload analyses with the
             State Department of Social
             Services (DSS).
        (b)  The SDE shall provide
             quarterly information
             regarding the sufficiency of
             funding for Stage 2 and Stage
             3 to DSS. The SDE shall
             provide caseloads,
             expenditures, allocations,
             unit costs, family fees, and
             other key variables and
             assumptions used in
             determining the sufficiency
             of state allocations.
             Detailed backup by month and
             on a county-by-county basis
             shall be provided to the DSS
             at least on a quarterly basis
             for comparisons with Stage 1
             trends.
        (d)  By September 30 and March 30
             of each year, the SDE shall
             ensure that detailed caseload
             and expenditure data, through
             the most recent period for
             Stage 2 and Stage 3 Setaside
             along with all relevant
             assumptions, is provided to
             DSS to facilitate budget
             development. The detailed
             data provided shall include
             actual and projected monthly
             caseload from Stage 2
             scheduled to time off of
             their transitional child care
             benefit from the last actual
             month reported by agencies
             through the next two fiscal
             years as well as local
             attrition experience. DSS
             shall utilize data provided
             by the SDE, including key
             variables from the prior
             fiscal year and the first two
             months of the current fiscal
             year, to provide coordinated
             estimates in November of each
             year for each of the three
             stages of care for
             preparation of the Governor's
             Budget, and shall utilize
             data from at least the first
             two quarters of the current
             fiscal year, and any
             additional monthly data as
             they become available for
             preparation of the May
             Revision. The DSS shall share
             its assumptions and
             methodology with the SDE in
             the preparation of the
             Governor's Budget.
        (e)  The SDE shall coordinate with
             the DSS to identify annual
             general subsidized child care
             program expenditures for
             Temporary Assistance for
             Needy Families-eligible
             children. The SDE shall
             modify existing reporting
             forms as necessary to capture
             this data.
        (f)  The SDE shall provide to the
             DSS, upon request, access to
             the information and data
             elements necessary to comply
             with federal reporting
             requirements and any other
             information deemed necessary
             to improve estimation of
             child care budgeting needs.
   7.   Notwithstanding any other
        provision of law, the funds in
        Schedule (1.5)(f) are reserved
        exclusively for continuing child
        care for the following: (a) former
        CalWORKs families who are working,
        have left cash aid, and have
        exhausted their two-year
        eligibility for transitional
        services in either Stage 1 or 2
        pursuant to subdivision (c) of
        Section 8351 or Section 8353 of
        the Education Code, respectively,
        but still meet eligibility
        requirements for receipt of
        subsidized child care services,
        and (b) families who received lump-
        sum diversion payments or
        diversion services under Section
        11266.5 of the Welfare and
        Institutions Code and have spent
        two years in Stage 2 off of cash
        aid, but still meet eligibility
        requirements for receipt of
        subsidized child care services.
   8.   Nonfederal funds appropriated in
        this item which have been budgeted
        to meet the state's Temporary
        Assistance for Needy Families
        maintenance-of-effort requirement
        established pursuant to the
        federal Personal Responsibility
        and Work Opportunity
        Reconciliation Act of 1996 (P.L.
        104-193) may not be expended in
        any way that would cause their
        disqualification as a federally
        allowable maintenance-of-effort
        expenditure.
   9.   (a)  Notwithstanding any other
             provision of law, the income
             eligibility limits pursuant
             to Section 8263.1 of the
             Education Code that were
             applicable to the 2007-08
             fiscal year shall remain in
             effect for the 2008-09 fiscal
             year.
   10.  Of the amounts provided in this
        item, $0 is available to provide a
        cost-of-living adjustment for
        Schedules (1), (1.5)(a), (1.5)(c),
        (1.5)(d), (1.5)(g), (1.5)(i),
        (1.5)(j), and (1.5)(n). The
        maximum standard reimbursement
        rate shall not exceed $34.38 per
        day for general child care
        programs and $21.22 per day for
        state preschool programs.
        Furthermore, the migrant child
        care and Cal-SAFE child care
        programs shall adhere to the
        maximum standard reimbursement
        rates as prescribed for the
        general child care programs. All
        other rates and adjustment factors
        shall be revised to conform.
   11.  Of the amounts provided in this
        item, $10,917,000 is available to
        provide a growth adjustment for
        Schedules (1), (1.5)(a), (1.5)(c),
        (1.5)(d), (1.5)(i), and (1.5)(j).
   12.  (a)  Notwithstanding any other
             provision of law, the funds
             in Schedule (1.5)(m) are
             appropriated exclusively for
             developing and maintaining a
             centralized eligibility list
             in each county pursuant to
             Section 8227 of the Education
             Code. By November 1 of each
             year, the State Department of
             Education shall provide a
             status report on implementing
             eligibility lists in each
             county, which shall include,
             but is not limited to, the
             cost of implementation and
             operation of the eligibility
             lists in each county, and
             number of children and
             families on the list for each
             county.
   13.  Notwithstanding Section 8278.3 of
        the Education Code or any other
        provision of law, up to $5,000,000
        of the Child Care Facilities
        Revolving Fund balance may be
        allocated for use on a one-time
        basis for renovations and repairs
        to meet health and safety
        standards, to comply with the
        federal Americans with
        Disabilities Act of 1990 (42
        U.S.C. Sec. 12101 et seq.), and to
        perform emergency repairs, that
        were the result of an unforeseen
        event and are necessary to
        maintain continued normal
        operation of the child care and
        development program. These funds
        shall be made available to school
        districts and contracting agencies
        that provide subsidized center-
        based services pursuant to the
        Child Care and Development
        Services Act (Chapter 2
        (commencing with Section 8200) of
        Part 6 of Division 1 of Title 1 of
        the Education Code).
   14.  It is the intent of the
        Legislature to fully fund the
        third stage of child care for
        former CalWORKs recipients.


  SEC. 29.    Item 6110-234-0001 of the Budget Act
of 2008 is amended to read:
6110-234-0001--For local assistance,
Department of Education (Proposition 98),
Program 10.25, for transfer by the
Controller to Section A of the State
School Fund, for allocation by the
Superintendent of Public Instruction for
the Class Size Reduction Program pursuant
to Chapter 6.10 (commencing with Section
52120) of Part 28 of Division 4 of Title
2 of the Education Code................... 1,769,291,231
      Provisions:
      1.     Schools participating in
             Option One shall receive a
             per-pupil rate of $1,071.
             Schools participating in
             Option Two shall receive a
             per-pupil rate of $535.


  SEC. 30.    Item 6110-488 of Section 2.00 of the
Budget Act of 2008 is amended to read:
6110-488--Reappropriation (Proposition 98),
Department of Education. Notwithstanding any other
provision of law, the unobligated balances from the
following items are available for reappropriation
for the purposes specified in Provisions 3, 4, and 5:
       0001--General Fund
       (1)        $12,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for preschool
                  education and child care programs
                  in Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2003 (Ch. 157, Stats. 2003), as
                  carried forward per Provision 1 of
                  Item 6110-196-0001 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (2)        $1,441,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for preschool
                  education and child care programs
                  in Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2004 (Ch. 208, Stats. 2004), as
                  carried forward per Provision 1 of
                  Item 6110-196-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (3)        $3,663,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for preschool
                  education and child care programs
                  in Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2005 (Chs. 38 and 39, Stats. 2005),
                  $1,749,000 of which was carried
                  forward per Provision 1 of Item
                  6110-196-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (4)        $12,921,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for CalWORKs Stage 2
                  and Stage 3 child care in Schedules
                  (1.5)(e) and (1.5)(f) of Item 6110-
                  196-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (6)        $18,120,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for preschool
                  education and child care programs
                  in Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007), with the exception of
                  Schedules (1.5)(e) and (1.5)(f) for
                  CalWORKs child care programs.
       (7)        $8,000,000 of the amount

                 appropriated to the Child Care
                  Facilities Revolving Fund
                  established pursuant to Section
                  8278.3 of the Education Code from
                  Section 2.00 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (8)        $5,000,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the provision of
                  wraparound care to children
                  enrolled in preschool programs
                  pursuant to Section 8238.6 of the
                  Education Code (Ch. 211, Stats.
                  2006).
       (9)        $48,000 or whatever greater or
                  lesser amount reflects the
                  unexpended funds from subdivision
                  (a) of Section 9 of Chapter 734 of
                  the Statutes of 1999.
       (10)       $21,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Community-Based
                  English Tutoring pursuant to
                  Section 315 of the Education Code,
                  as enacted by Proposition 227 in
                  1998.
       (11)       $9,200,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for juvenile education
                  in Item 5225-011-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (12)       $76,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Small School
                  District Bus Replacement in
                  Schedule (2) of Item 6110-111-0001
                  of the Budget Act of 2005 (Chs. 38
                  and 39, Stats. 2005).
       (13)       $488,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Home to School
                  Transportation in Schedule (1) of
                  Item 6110-111-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (14)       $545,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  High School Exit Examination in
                  Schedule (4) of Item 6110-113-0001
                  of the Budget Act of 2006 (Chs. 47
                  and 48, Stats. 2006).
       (15)       $2,060,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Assessment Review
                  and Reporting and the STAR Program
                  in Schedules (1) and (2) of Item
                  6110-113-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (16)       $19,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for transfer to the
                  State School Fund for specialized
                  secondary programs in Item 6110-122-
                  0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (17)       $17,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Immediate
                  Intervention/Underperforming
                  Schools Program Corrective Actions
                  in Schedule (3) of Item 6110-123-
                  0001 of the Budget Act of 2005
                  (Chs. 38 and 39, Stats. 2005).
       (18)       $2,993,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the implementation
                  of the Public Schools
                  Accountability Act of 1999 for the
                  Immediate
                  Intervention/Underperforming
                  Schools Program Corrective Actions
                  in Schedule (2) of Item 6110-123-
                  0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (19)       $615,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the implementation
                  of the Public Schools
                  Accountability Act of 1999 for the
                  Immediate
                  Intervention/Underperforming
                  Schools Program Corrective Actions
                  in Schedule (2) of Item 6110-123-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (20)       $5,149,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the English
                  Language Learners Program in
                  Schedule (2) of Item 6110-125-0001
                  of the Budget Act of 2006 (Chs. 47
                  and 48, Stats. 2006).
       (21)       $5,149,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the English
                  Language Acquisition Program in
                  Schedule (2) of Item 6110-125-0001
                  of the Budget Act of 2007 (Chs. 171
                  and 172, Stats. 2007).
       (22)       $109,000 or  whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for transfer to the
                  State School Fund for Economic
                  Impact Aid in Schedule (1) of Item
                  6110-128-0001 of the Budget Act of
                  2005 (Chs. 38 and 39, Stats. 2005).
       (23)       $4,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for transfer to the
                  State School Fund for Economic
                  Impact Aid in Item 6110-128-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (24)       $1,500,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Administrator
                  Training Program in Item 6110-144-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (25)       $7,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the American
                  Indian Early Childhood Education
                  Program in Item 6110-150-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (26)       $110,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for American Indian
                  Education Centers in Schedule (1)
                  of Item 6110-151-0001 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (27)       $177,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for American Indian
                  Education Centers in Item 6110-151-
                  0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (28)       $1,385,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for adults in
                  correctional facilities in Item
                  6110-158-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (29)       $107,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for special education
                  instruction in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2005 (Chs. 38 and 39, Stats. 2005).
       (30)       $21,919,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for special education
                  instruction in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (31)       $57,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for vocational
                  education for partnership academies
                  in Item 6110-166-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (32)       $23,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Agricultural
                  Vocational Education Incentive
                  Program in Item 6110-167-0001 of
                  the Budget Act of 2005 (Chs. 38 and
                  39, Stats. 2005).
       (33)       $369,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for educational
                  technology programs in Item 6110-
                  181-0001 of the Budget Act of 2005
                  (Chs. 38 and 39, Stats. 2005).
       (34)       $369,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  transferred to the State School
                  Fund for educational technology
                  programs in Item 6110-181-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (35)       $27,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for staff development
                  for teacher peer review in Schedule
                  (2) of Item 6110-193-0001 of the
                  Budget Act of 2005 (Chs. 38 and 39,
                  Stats. 2005).
       (36)       $95,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Bilingual
                  Teacher Training Assistance Program
                  and teacher peer review in
                  Schedules (1) and (2) of Item 6110-
                  193-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (37)       $43,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for transfer to the
                  State School Fund for teacher
                  dismissal apportionments in Item
                  6110-209-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (38)       $13,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for School Community
                  Policing Partnership Competitive
                  Grants Program in Schedule (5) of
                  Item 6110-228-0001 of the Budget
                  Act of 2004 (Ch. 208, Stats. 2004).
       (39)       $21,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the International
                  Baccalaureate Diploma Program in
                  Schedule (1) of Item 6110-240-0001
                  of the Budget Act of 2005 (Chs. 38
                  and 39, Stats. 2005).
       (40)       $6,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Teacher
                  Credentialing Block Grant Program
                  in Item 6110-244-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (41)       $79,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School and
                  Library Improvement Block Grant
                  Program in Item 6110-247-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (42)       $186,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School and
                  Library Improvement Block Grant
                  Program in Item 6110-247-0001 of
                  the Budget Act of 2007 (Chs. 171
                  and 172, Stats. 2007).
       (43)       $30,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Physical
                  Education Teacher Incentive Grant
                  Program in Item 6110-260-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (44)       $641,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to county offices of
                  education for site visits for
                  Williams audits in Item 6110-266-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (45)       $101,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Charter School
                  Facility Grant Program in Schedule
                  (7) of Item 6110-485 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (46)       $600,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Principal
                  Training Program in Schedule (8) of
                  Item 6110-485 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (47)       $25,645,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance for the After
                  School Education and Safety Program
                  in Item 6110-649-0001 from the 2004-
                  05 fiscal year appropriation
                  pursuant to Section 8483.5 of the
                  Education Code, as enacted by
                  Proposition 49 in 2002.
       (48)       $178,352,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance for the After
                  School Education and Safety Program
                  in Item 6110-649-0001 from the 2007-
                  08 fiscal year appropriation
                  pursuant to Section 8483.5 of the
                  Education Code, as enacted by
                  Proposition 49 in 2002, and
                  pursuant to Section 8483.51 of the
                  Education Code as enacted by
                  Chapter 2 of the Statutes of 2008,
                  Third Extraordinary Session.
       (49)       $20,000,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for special education
                  instruction in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (50)       $520,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance for the After
                  School Education and Safety Program
                  in Item 6110-649-0001 from the 2006-
                  07 fiscal year appropriation
                  pursuant to Section 8483.5 of the
                  Education Code, as enacted by
                  Proposition 49 in 2002, and
                  pursuant to Section 8483.51 of the
                  Education Code, as enacted by
                  Chapter 2 of the Statutes of 2008,
                  Third Extraordinary Session.
       (51)       $3,207,465 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for special education
                  programs in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2003 (Ch. 157, Stats. 2003).
       (52)       $10,922 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School Safety
                  Consolidated Competitive Grant in
                  Item 6110-248-0001 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (53)       $10,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the adult
                  education program and regional
                  occupational programs pursuant to
                  Article 2 (commencing with Section
                  51120) of Chapter 1.5 of Part 28 of
                  Division 4 of Title 2 of the
                  Education Code in Schedule (3) of
                  Section 43 of Chapter 79 of the
                  Statutes of 2006.
       (54)       $27,500 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the parental
                  involvement program pursuant to
                  Article 2 (commencing with Section
                  51120) of Chapter 1.5 of Part 28 of
                  Division 4 of Title 2 of the
                  Education Code in Schedule (9) of
                  Section 43 of Chapter 79 of the
                  Statutes of 2006.
       (55)       $114,395 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for teacher
                  recruitment and retention pursuant
                  to Article 2 (commencing with
                  Section 51120) of Chapter 1.5 of
                  Part 28 of Division 4 of Title 2 of
                  the Education Code in Schedule (20)
                  of Section 43 of Chapter 79 of the
                  Statutes of 2006.
       (56)       $25,725 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for start-up school
                  breakfast and summer food program
                  pursuant to Article 2 (commencing
                  with Section 51120) of Chapter 1.5
                  of Part 28 of Division 4 of Title 2
                  of the Education Code in Schedule
                  (8) of Section 43 of Chapter 79 of
                  the Statutes of 2006.
       (57)       $831,523 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for prior year mandate
                  claims made by local education
                  agencies pursuant to Article 2
                  (commencing with Section 51120) of
                  Chapter 1.5 of Part 28 of Division
                  4 of Title 2 of the Education Code
                  in Schedule (1) of Section 43 of
                  Chapter 79 of the Statutes of 2006.
       (58)       $3,115,995 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the High Priority
                  Schools Grant Program in Schedule
                  (1) of Item 6110-123-0001 of the
                  Budget Act of 2006 (Chs. 47 and 48,
                  Stats. 2006).
       (59)       $247,611 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Special
                  Education Infant Program in
                  Schedule (1) of Item 6110-161-0001
                  of the Budget Act of 2006 (Chs. 47
                  and 48, Stats. 2006).
       (60)       $730,454 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Early
                  Education for Individuals with
                  Exceptional Needs in Schedule (2)
                  of Item 6110-161-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (61)       $44,135 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Agricultural
                  Vocational Education in Item 6110-
                  167-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (62)       $29,837 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  High School Exit Exam Intensive
                  Intervention Program in Item 6110-
                  204-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (63)       $6,057 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School Safety
                  Block Grant in Schedule (1) of Item
                  6110-228-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (64)       $8,500,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the K-3 Class Size
                  Reduction Program in Item 6110-234-
                  0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (65)       $339,439 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Pupil
                  Retention Block Grant in Item 6110-
                  243-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (66)       $98,647 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                                                       appropriated
for the Professional
                  Development Block Grant in Item
                  6110-245-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (67)       $5,130 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Arts and Music
                  Block Grant in Item 6110-265-0001
                  of the Budget Act of 2006 (Chs. 47
                  and 48, Stats. 2006).
       (68)       $1,941,700 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Certificated
                  Staff Mentoring Program in Item
                  6110-267-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (69)       $12,844 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School Safety
                  Block Grant Program pursuant to
                  subparagraph (J) of paragraph (2)
                  of subdivision (a) of Section 31 of
                  Chapter 73 of the Statutes of 2005.
       (70)       $11,705,886 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for adult education
                  programs pursuant to subparagraph
                  (G) of paragraph (2) of subdivision
                  (a) of Section 31 of Chapter 73 of
                  the Statutes of 2005.
       (71)       $1,217,782 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Prior Year K-
                  12 Education Mandate Claims in
                  Schedule (10) of Item 6110-485 of
                  the Budget Act of 2006 (Chs. 47 and
                  48,  Stats. 2006).
       (72)       $57,239 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Prior Year K-
                  12 Education Mandate Claims in
                  Schedule (12) of Item 6110-485 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (73)       $40,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the specialized
                  secondary programs in Item 6110-122-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (74)       $658,800 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the High Priority
                  Schools Grant Program in Schedule
                  (1) of Item 6110-123-0001 of the
                  Budget Act of 2007 (Chs. 171 and
                  172, Stats. 2007).
       (75)       $40,310 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Partnership
                  Academies Program in Item 6110-166-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (76)       $145,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the National Board
                  Certification Program in Item 6110-
                  195-0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (77)       $49,774 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  High School Exit Exam Intensive
                  Instruction Program in Item 6110-
                  204-0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (78)       $41,445 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Teacher
                  Dismissal Apportionment Program in
                  Item 6110-209-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (79)       $1,003,040 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Pupil
                  Retention Program in Item 6110-243-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (80)       $167,158 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Professional
                  Development Block Grant in Item
                  6110-245-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (81)       $429,880 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Certificated
                  Staff Mentoring Program in Item
                  6110-267-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (82)       $7,821 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Home to School
                  Transportation Program in Schedule
                  (14) of Item 6110-485 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (83)       $281,207 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Quality
                  Education Improvement Act in
                  subparagraph (B) of paragraph (1)
                  of subdivision (c) of Section
                  52055.770 of the Education Code.
       (84)       $499,639 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (15)
                  of Item 6870-101-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (85)       $145,359 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges for nursing
                  faculty recruitment and retention
                  in paragraph (30) of subdivision
                  (a) of Section 43 of Chapter 79 of
                  the Statutes of 2006.
       (86)       $229,653 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (18)
                  of Item 6870-101-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (87)       $40,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (15)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (88)       $59,931 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (20)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (89)       $81,824 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (23)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (90)       $404,091 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (18)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (91)       $817,973 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (6)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (92)       $8,738,578 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Prior Year K-
                  12 Education Mandate Claims of
                  subparagraph (A) of paragraph (3)
                  of subdivision (a) of Section 44 of
                  Chapter 79 of the Statutes of 2006.
       Provisions:
       3.         The sum of $38,631,987 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for the purpose of
                  funding CalWORKs Stage 2 child
                  care. The amount reappropriated
                  pursuant to this provision is for
                  use in the 2008-09 fiscal year.
       4.         The sum of $164,686,000 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for the purpose of
                  funding CalWORKs Stage 3 child
                  care. The amount reappropriated
                  pursuant to this provision is for
                  use in the 2008-09 fiscal year.
       5.         The sum of $46,161,769 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for the Class Size
                  Reduction Program pursuant to
                  Chapter 6.10 (commencing with
                  Section 52120) of Part 28 of
                  Division 4 of Title 2 of the
                  Education Code.


   SEC. 31.    Item 6870-101-0001 of Section
2.00 of the Budget Act of 2008 is amended to read: 
 6870-101-0001--For local assistance, Board of 
 Governors of the California Community Colleges  3,649,230

 (Proposition 98)...............................      ,000

      Schedule: 
      (1) 10.10.010-Apportionments..... 2,830,717 
                                             ,000 
      (2) 10.10.020-Apprenticeship..... 14,641,00 
                                                0 
      (3) 10.10.030-Growth for          113,500,0 
          Apportionments...............        00 
      (4) 20.10.004-Student Success     33,100,00 
          for Basic Skills Students....         0 
      (5) 20.10.005-Student Financial   51,269,00 
          Aid Administration...........         0 
      (6) 20.10.020-Disabled Students.. 115,011,0 
                                               00 
      (7) 20.10.045-Special Services    43,580,00 
          for CalWORKs Recipients......         0 
      (8) 20.10.060-Foster Care 
          Education Program............ 5,254,000 
      (9) 20.10.070-Matriculation...... 101,803,0 
                                               00 
      (10 20.20.020-Academic Senate 
      )   for the Community Colleges...   467,000 
      (11 20.20.041-Equal Employment 
      )   Opportunity pursuant to Ch. 
          1169, Stats. 2002............ 1,747,000 
      (12 20.20.050-Part-time Faculty 
      )   Health Insurance............. 1,000,000 
      (13 20.20.051-Part-time Faculty   50,828,00 
      )   Compensation.................         0 
      (14 20.20.055-Part-time Faculty 
      )   Office Hours................. 7,172,000 
      (15 20.30.011-Telecommunications  26,197,00 
      )   and Technology Services......         0 
      (16 20.30.050-Economic            46,790,00 
      )   Development..................         0 
      (17 20.30.070-Transfer Education 
      )   and Articulation............. 1,424,000 
      (18 20.40.026-Physical Plant and  27,345,00 
      )   Instructional Support........         0 
      (19 20.10.010-Extended 
      )   Opportunity Programs and 
          Services and Special          122,291,0 
          Services.....................        00 
     (20 20.30.045-Fund for Student 
      )   Success...................... 6,158,000 
      (21 20.70.010-Career Technical    20,000,00 
      )   Education....................         0 
      (22 20.80.010-Campus Childcare 
      )   Tax Bailout.................. 6,836,000 
      (23 20.95.010-Nursing Program     22,100,00 
      )   Support......................         0 
      Provisions: 
      1.  The funds appropriated in Schedules 
          (1), (2), (3), (4), (5), (6), (7), 
          (8), (9), (11), (12), (13), (14), 
          (15), (16), (18), (19), and (22) are 
          for transfer by the Controller during 
          the 2008-09 fiscal year to Section B 
          of the State School Fund. 
      2.  Notwithstanding any other provision of 
          law, apportionment funding for 
          community college districts shall be 
          based on the greater of the current 
          year or prior year level of full-time 
          equivalent students (FTES), consistent 
          with K-12 declining enrollment 
          practices pursuant to Section 42238.5 
          of the Education Code. Decreases in 
          FTES shall result in a revenue
          reduction at the district's average 
          level of apportionment funding per 
          FTES and shall be made in the year 
          following the initial year of decrease 
          in FTES. 
      3.  The funds appropriated in Schedule (1) 
          for Apportionments include $31,409,000 
          to encourage district-level 
          accountability efforts pursuant to 
          Section 84754.5 of the Education Code. 
          It is intended that the Chancellor of 
          the California Community Colleges 
          submit an annual report on district-
          specific accountability measures by 
          March 19 of each year. This report 
          shall reflect outcomes from the most 
          recently completed fiscal year for 
          which data is available pursuant to 
          Section 84754.5 of the Education Code. 
     4.  Of the funds appropriated in Schedule 
          (1), Apportionments:
          (a) Up to $100,000 is for a 
              maintenance allowance, pursuant to 
              Section 54200 of Title 5 of the 
              California Code of Regulations. 
          (b) Up to $500,000 is to reimburse 
              colleges for the costs of federal 
              aid repayments related to assessed 
              fees for fee waiver recipients. 
              This reimbursement only applies to 
              students who completely withdraw 
              from college before the census 
              date pursuant to Section 58508 of 
              Title 5 of the California Code of 
              Regulations. 
      5.  Notwithstanding any other provision of 
          law, the Chancellor of the California 
          Community Colleges shall not reduce 
          district workload obligations for a 
          lack of a funded cost-of-living 
          adjustment. 
      6.  (a) Of the amount appropriated in 
              Schedule (2) for the 
              Apprenticeship Program, up to 
              $14,641,000 shall be available as 
              necessary upon certification by 
              the Chancellor of the California 
              Community Colleges for the purpose 
              of funding community college- 
              related and supplemental 
              instruction pursuant to Section 
              3074 of the Labor Code, as
              provided in Section 8152 of the 
              Education Code. No community 
              college district shall use funds 
              available under this provision to 
              offer any new apprenticeship 
              training program or the expansion 
             of any existing program unless the 
              new program or expansion has been 
              approved by the chancellor. 
          (b) Notwithstanding Section 8152 of 
              the Education Code, each 60-minute 
              hour of teaching time devoted to 
              each indentured apprentice 
              enrolled in and attending classes 
              of related and supplemental 
              instruction as provided under 
              Section 3074 of the Labor Code 
              shall be reimbursed at the rate of 
              $5.06 per hour. For purposes of 
              this provision, each hour of 
              teaching time may include up to 10 
              minutes for passing time and 
              breaks. 
      7.  Funds appropriated in Schedule (3), 
          Growth for Apportionments, shall be 
          available first to any districts 
          bringing online in the current fiscal 
          year newly accredited colleges or 
          California Postsecondary Education 
          Commission-approved educational 
          centers. It is the intent of the 
          Legislature that increases in basic 
          foundation allocations to each college 
          be funded prior to additional growth 
          in full-time equivalent students. The 
          Chancellor of the California Community 
          Colleges shall provide a report by 
          November 1 of each year, to the 
          Department of Finance and the 
          Legislative Analyst, on the number of 
          new centers and colleges added for the 
          current fiscal year and those 
          anticipated to be added for the 
          prospective budget year. This report 
          shall also detail the specific funding 
          adjustments provided for basic 
          foundation allocations to each college 
          and center for the current fiscal year. 
      8.  Notwithstanding any other provision of 
          law, funds appropriated in Schedule 
          (3) for Growth for Apportionments 
          shall only be allocated for growth in 
          full-time equivalent students (FTES), 
          on a district-by-district basis, as 
          determined by the Chancellor of the 
          California Community Colleges. The 
          chancellor shall not include any FTES 
          from concurrent enrollment in physical 
          education, dance, recreation, study 
          skills, and personal development 
          courses and other courses in conflict 
          with existing law for the purpose of 
          calculating a district's three-year 
          overcap adjustment. The Board of 
          Governors of the California Community 
          Colleges shall implement the criteria 
          required by subdivision (a) of 
          Provision 5 of Item 6870-101-0001 of 
          the Budget Act of 2003 (Ch. 157, 
          Stats. 2003) for the allocation of 
          funds appropriated in Schedules (1) 
          and (3), so as to ensure that courses 
          related to student needs for transfer, 
          basic skills, and vocational/workforce
          training are accorded the 
          highest priority and are provided to 
          the maximum extent possible within 
          budgeted funds. 
      10. Of the amount appropriated in Schedule 
          (1), $10,000,000 shall only be 
          available for noncredit instruction to 
          prepare pupils to pass the California 
          High School Exit Examination (CAHSEE). 
          The first priority shall be to serve 
          high school pupils from the class of 
          2007 who met all other graduation 
          requirements except for passage of the 
          CAHSEE. Remaining funds may be used to 
          support other necessary noncredit 
          courses for other pupils who not only 
          did not pass the CAHSEE, but who did 
          not complete other coursework 
          necessary to meet high school 
          graduation requirements. These funds 
          are intended to supplement but not 
          supplant existing funding for these 
          purposes. 
      11. The funds appropriated in Schedule 
          (4), Student Success for Basic Skills 
          Students, shall be allocated as 
          follows: 
          (a) $1,600,000 for faculty and staff 
              development to improve curriculum, 
              instruction, student services, and 
              program practices in the areas of 
              basic skills and English as a 
              Second Language (ESL) programs. 
              The Office of the Chancellor of 
              the California Community Colleges 
              shall select a district, utilizing 
              a competitive process, to carry 
              out these faculty and staff 
              development activities. All 
              colleges receiving funds pursuant 
              to subdivision (b) shall be 
              provided with the opportunity to 
              participate in the faculty and 
              staff development programs 
              specified in this subdivision. The 
              chancellor shall report on the use 
              of these funds by the selected 
              district to the Legislative 
              Analyst and the Department of 
              Finance not later than September 
              1, 2009. 
          (b) $31,500,000 for allocation by the 
              chancellor to community college 
              districts for improving outcomes 
              of students who enter college 
              needing at least one course in ESL 
              or basic skills, with particular
              emphasis on students transitioning 
              from high school. 
          (c) Funding specified in subdivisions 
              (a) and (b) shall be distributed 
              to eligible applicants pursuant to 
              Chapter 489 of the Statutes of 
              2007.
          (d) The Office of the Chancellor shall 
              work jointly with the Department 
              of Finance and the Legislative 
              Analyst to develop annual 
              accountability measures for this 
              program. It is the intent of the 
              Legislature that annual 
              performance accountability 
              measures for this program utilize, 
              to the extent possible, data 
              available as part of the 
              accountability system developed 
              pursuant to Section 84754.5 of the 

                      Education Code. By November 1,

              2009, the chancellor shall submit 
              a report to the Governor and 
              Legislature on the annual 
              accountability measures developed 
              pursuant to this process. 
      12. (a) Of the funds appropriated in 
              Schedule (5) for Student Financial 
              Aid Administration, not less than 
              $9,864,000 is available to provide 
              $0.91 per unit reimbursement to 
              community college districts for 
              the provision of board of 
              governors (BOG) fee waiver awards 
              pursuant to paragraph (2) of 
              subdivision (m) of Section 76300 
              of the Education Code. 
          (b) Of the funds appropriated in 
              Schedule (5), not less than 
              $4,405,000 is available to provide 
              reimbursement of 2 percent of 
              total waiver value to community 
              college districts for the 
              provision of BOG fee waiver awards 
              pursuant to paragraph (2) of 
              subdivision (m) of Section 76300 
              of the Education Code. 
          (c) Funding provided to community 
              college districts in subdivisions 
              (a) and (b) of Provision 15 is 
              provided to directly offset any 
              mandated costs claimed by 
              community college districts 
              pursuant to Commission on State 
              Mandates Test Claims 99-TC-13 
              (Enrollment Fee Collection) and 00- 
              TC-15 (Enrollment Fee Waivers). 
          (d) (1) Of the amount appropriated in 
                  Schedule (5), $2,800,000 shall 
                  be for a contract with a 
                  community college district to 
                  conduct a statewide media 
                  campaign to promote the 
                  general message to prospective 
                  students as follows: (A) the 
                  California Community Colleges 
                  (CCC) remain affordable, (B) 
                  financial aid and tax credits 
                  are available to cover 
                  enrollment fees and help with 
                  books and other costs, and (C) 
                  the active encouragement of 
                  contact between pupils and 
                  local CCC financial aid 
                  offices. Any funds used from 
                  this source to produce radio, 
                  television, or mail campaigns 
                  must emphasize the 
                  availability of financial aid, 
                  the easiest and most reliable 
                  method of accessing the aid, a 
                  contact telephone number, an 
                  Internet Web site address, 
                  where applicable, and the 
                  physical location of a 
                  financial aid office. Any mail 
                  campaign must give priority to 
                  existing pupils, recent high 
                  school graduates, and 12th 
                  graders. The outreach and 
                  information campaign should 
                  target its efforts       in 
                  high schools, welfare offices, 
                  unemployment offices, 
                  churches, community centers, 
                  and any other location that 
                  will most effectively reach
                  low-income and disadvantaged 
                  students who must overcome 
                  barriers in accessing 
                  postsecondary education. The 
                  community college district
                  awarded the contract shall 
                  consult with the Chancellor of 
                  the California Community 
                  Colleges and the Student Aid 
                  Commission prior to performing 
                  any activities to ensure 
                  appropriate coordination with 
                  any other state efforts in 
                  this area and ensure 
                  compliance with this provision. 
              (2) Of the amount appropriated in 
                  Schedule (5), not more than 
                  $34,200,000 shall be for 
                  direct contact with potential 
                  and current financial aid 
                  applicants. Each CCC campus 
                  shall receive a minimum 
                  allocation of $50,000. The 
                  remainder of the funding shall 
                  be allocated to campuses based 
                  upon a formula reflecting full- 
                  time equivalent students 
                  (FTES) weighted by a measure 
                  of low-income populations as 
                  demonstrated by BOG fee waiver 
                  program participation within a 
                  district. It is the intent of 
                  the Legislature, to the extent 
                  that funds are provided in 
                  this item, that all campuses 
                  provide additional staff 
                  resources to increase both 
                  financial aid participation 
                  and student access to low- 
                  income and disadvantaged 
                  students who must overcome 
                  barriers in accessing 
                  postsecondary education. Funds 
                  may be used for screening 
                  current students for possible 
                  financial aid eligibility and 
                  offering personal assistance 
                  to these students in accessing 
                  financial aid, providing 
                  individual help in 
                  multiple languages for 
                  families and students in 
                  filling out the necessary 
                  paperwork to apply for 
                  financial aid, and increasing 
                  financial aid staff to process 
                  additional financial aid forms. 
              (3) Funds allocated to a community 
                  college district for financial 
                  aid personnel, outreach 
                  determination of financial 
                  need, and delivery of student 
                  financial aid services shall 
                  supplement, and shall not 
                  supplant, the level of funds 
                  allocated for the
                  administration of student 
                  financial aid programs during 
                  the 2001-02 fiscal year. 
              (4) It is the intent of the 
                  Legislature that the Office of 
                  the Chancellor of the 
                  California Community Colleges 
                  provide the Legislature with a 
                  report not later than April 1, 
                  2009, on the use of the funds 
                  allocated pursuant to 
                  paragraphs (1) and (2) of this 
                  subdivision (d), including the 
                  distribution of the funds, 
                  specific uses of the funds, 
                  strategies employed to reach 
                  low-income and disadvantaged 
                 students potentially eligible 
                  for financial aid, and the 
                  extent to which districts were 
                  successful in increasing the 
                  number of students accessing 
                  financial aid, particularly 
                  the maximum Pell Grant award. 
              (5) It is the intent of the 
                  Legislature that the 
                  chancellor report by September 
                  1, 2008, in the manner and 
                  using the factors set forth in 
                  paragraph (5) of subdivision
                  (b) of Provision 11 of Item 
                  6870-101-0001 of Section 2.00 
                  of the Budget Act of 2004 (Ch.
                  208, Stats. 2004), on the 
                  impact of outreach efforts on 
                  student headcount and FTES 
                  enrollment for the 2005-06 and 
                  2006-07 academic years. 
      13. Of the funds appropriated in Schedule 
          (19) for Extended Opportunity Programs 
          and Services, $106,786,000 is for 
          Extended Opportunity Programs and 
          Services (EOPS) in accordance with 
          Article 8 (commencing with Section 
          69640) of Chapter 2 of Part 42 of 
          Division 5 of Title 3 of the Education 
          Code. Funds provided in this item for
          EOPS shall be available to students on 
          all campuses within the California 
          Community College system, including 
          those students on new campuses or in 
          new districts. In addition, 
          $15,505,000 is for funding, at all 
          colleges, the Cooperative Agencies 
          Resources for Education (CARE) program 
          in accordance with Article 4 
          (commencing with Section 79150) of 
          Chapter 9 of Part 48 of Division 7 of 
          Title 3 of the Education Code. The 
          Board of Governors of the California 
          Community Colleges shall allocate 
          funds on a priority basis to local 
          programs on the basis of need for 
          student services. 
      14. Of the funds appropriated in Schedule 
          (19) for the Extended Opportunity 
          Programs and Services, $1,900,000 
          shall be available to support
          additional textbook assistance grants 
          to community college students as an 
          allowable expenditure consistent with 
          paragraph (10) of subdivision (b) of 
          Section 69648 of the Education Code. 
      15. The funds appropriated in Schedule 
          (20) for the Fund for Student Success 
          is for additional targeted student 
          services, to be expended as follows: 
          (a) $1,921,000 is for the Puente 
              Project to support up to 75 
              colleges. These funds are 
              available if matched by $200,000 
              of private funds and the 
              participating community colleges 
              and University of California 
              campuses maintain their 1995-96 
              fiscal year support level for the 
              Puente Project. All funding shall 
              be allocated directly to 
              participating districts in 
              accordance with their 
              participation agreement. 
          (b) Up to $2,459,000 is for the 
              Mathematics, Engineering and 
              Science Achievement (MESA) 
              Program. For each dollar 
              allocated, the recipient district 
              shall provide $1 in matching funds. 
          (c) No less than $1,778,000 is for the 
              Middle College High School 
              Program. With the exception of 
              fully compliant special part-time 
              students at the community colleges 
              pursuant to Sections 48802 and 
              76001 of the Education Code, 
              student workload based on 
              participation in the Middle 
              College High School Program shall 
              not be eligible for community 
              college state apportionment. 
              Further, no community college 
              state apportionment shall be made 
              available for physical education 
              classes, noncredit classes, nor 
              other courses specified in 
              Provision 8. 
      16. (a) The funds appropriated in Schedule 
              (6) for the Disabled Students 
              Program are for assisting 
              districts in funding the excess 
              direct instructional cost of 
              providing special support services 
              or instruction, or both, to 
              disabled students enrolled at 
              community colleges, and for state 
              hospital programs, as mandated by 
              federal law. 
          (b) Of the amount appropriated in 
              Schedule (6), no less than 
              $3,945,000 shall be used to 
              address deficiencies identified by 
              the federal Office of Civil Rights 
              (OCR), as determined by the Office 
              of the Chancellor of the 
              California Community Colleges. 
          (c) Of the amount appropriated in 
              Schedule (6), at least $943,000 
              shall be used for support of the 
              High Tech Centers for activities 
             including, but not limited to, 
              training of district employees, 
              staff, and students in the use of 
              specialized computer equipment for 
              the disabled. All High Tech 
              Centers shall meet standards 
              developed by the Office of the 
              Chancellor. Colleges that receive 
              these augmentations shall not 
              supplant existing resources 
              provided to the centers. 
          (d) Notwithstanding any other 
              provision of law, of the funds 
              appropriated in Schedule (6), 
              $1,246,000 shall be for state 
              hospital adult education programs 
              at the hospitals served by the 
              Coast and Kern Community College 
              Districts since the 1986-87 fiscal 
              year. If adult education services 
              at any of the three hospitals are 
              not supported by the community 
              colleges in any portion of the 
              2008-09 fiscal year, remaining 
             funds shall, upon order of the 
              Department of Finance, after 30 
              days' notice to the Chairperson of 
              the Joint Legislative Budget 
              Committee, be transferred to the
              State Department of Developmental 
              Services (DDS). For any transfer 
              of funds to DDS during the 2008-09
              fiscal year, the Proposition 98 
              base funding levels for community 
              colleges and DDS shall be adjusted 
              accordingly. 
          (e) Of the funds appropriated in 
              Schedule (6) for the Disabled 
              Student Services, no less than 
              $9,600,000 shall be allocated to 
              support high-cost sign language 
              interpreter services and real-time 
              captioning equipment or other 
              communication accommodations for 
              hearing-impaired students based on 
              a 4-to-1 state-to-local district 
              match. 
      17. The funds appropriated in Schedule 
          (7), Special Services for CalWORKs 
          Recipients, are for the purpose of 
          assisting welfare recipient students 
          and those in transition off of welfare 
          to achieve long-term self-sufficiency 
          through coordinated student services 
          offered at community colleges, 
          including workstudy, other educational 
          related work experience, job placement 
          services, child care services, and 
          coordination with county welfare 
          offices to determine eligibility and 
          availability of services. All services 
          funded in Schedule (7) shall be for 
          current CalWORKs recipients or prior 
          CalWORKs recipients who are in 
          transition off of cash assistance for 
          no more than two years. Current cash- 
          assistance recipients may utilize 
          these services until their initial 
          educational objectives are met. Former 
          recipients in transition off of cash 
          assistance may utilize these services 
          for a period of up to two years after 
          leaving cash assistance subject to the 
          conditions of this       provision. 
          These funds shall be used to 
          supplement and not supplant existing 
          funds and services provided for 
          CalWORKs recipients attending 
          community colleges. The Chancellor of 
          the California Community Colleges 
          shall develop an equitable method for 
          allocating funds to all districts and 
          colleges based on the relative numbers 
          of CalWORKs recipients in attendance 
          and shall allocate funds for the 
          following purposes: 
          (a) Job placement. 
          (b) Coordination with county welfare 
              offices and other local agencies, 
              including local workforce 
              investment boards. 
          (c) Curriculum development and 
              redesign. 
          (d) Child care and workstudy. 
          (e) Instruction. 
          (f) Postemployment skills training and 
              related skills. 
          (g) Campus-based case management, 
              limited to on-campus assistance 
              and services not provided by 
              county case workers that do not 
              supplant other counseling and 
              academic support services funded 
              through existing California 
              Community Colleges categorical 
              programs. 
           Of the amount appropriated in 
          Schedule (7), $15,000,000 is for child 
          care and does not require a district 
          match. For the remaining funds, 
          districts shall, as a condition of 
          receipt of these funds, provide a $1 
          match for every $1 provided by the 
          state. 
           Funds utilized for subsidized child 
          care shall be for children of CalWORKs 
          recipients through campus-based 
          centers or parental choice vouchers at 
          rates and with rules consistent with 
          those applied to related programs 
          operated by the State Department of 
          Education in the 2008-09 fiscal year, 
          including eligibility, reimbursement 
          rates, and parental contribution 
          schedules. Subsidized campus child 
          care for CalWORKs recipients may be 
          provided during the period they are 
          engaged in qualifying state and 
          federal work activities through 
          attainment of their initial education 
          and training plan and for up to three
          months thereafter or until the end of 
          the academic year, whichever period of 
          time is greater. 
           Funds utilized for workstudy shall be 
          used solely for payments to employers 
          that currently participate in campus- 
          based workstudy programs or are 
          providing work experiences that are
          directly related to and in furtherance 
          of student educational programs and 
          work participation requirements, 
          provided that those payments may not 
          exceed 75 percent of the wage for the 
          workstudy positions, and the employers 
          shall pay at least 25 percent of the 
          wage for the workstudy positions. 
          These funds may be expended only if 
          the total hours of education, 
          employment, and workstudy for the 
          student are sufficient to meet both 
          state and federal minimum requirements 
          for qualifying work-related activities. 
           Funds may be used to provide credit 
          or noncredit classes for CalWORKs 
          students if a district has committed 
          all of its funded full-time equivalent 
          students (FTES) and is unable to offer 
          the additional instructional services 
          to meet the demand for CalWORKs 
          students. This determination shall be 
          based on fall enrollment information. 
          Districts shall submit applications to 
          the Office of the Chancellor by 
          October 15 of each year. If the 
          chancellor approves the use of funds 
          for direct instructional workload, the 
          Office of the Chancellor shall submit 
          a report to the Department of Finance 
          and the Joint Legislative Budget 
          Committee by November 15, 2008, that 
          (a) identifies the enrollment of new 
          CalWORKs students, (b) states whether 
          and why additional classes were needed 
         to accommodate the needs of CalWORKs 
          students, and (c) sets forth an 
          expenditure plan for the balance of 
          funds. 
           As a condition of receipt of the 
          funds appropriated in Schedule (7), by 
          the fourth week following the end of 
          the semester or quarter term 
          commencing in January 2009, each 
          participating community college shall 
          submit to the Office of the Chancellor 
          a report, in the format specified by 
          the chancellor in consultation with 
          the State Department of Social 
          Services, that includes, but is not 
          limited to, the funded components, the 
          number of hours of child care 
          provided, the average monthly 
          enrollment of CalWORKs dependents 
          served in child care, the number of 
          workstudy hours provided, the hourly 
          salaries and type of jobs, the number 
          of students being case managed, the 
          short-term programs available, the 
          student participation rates, and other 
          outcome data. It is intended that, to 
          the extent practical, reporting from 
          colleges utilize data gathered for 
          federal reporting requirements at the
          state and local level. Further, it is 
          intended that the       Office of the 
          Chancellor compile the information for 
          annual reports to the Legislature, the 
          Governor, the Legislative Analyst, the 
          Department of Finance, and the State 
          Department of Social Services by 
          November 15 of each year. 
           First priority for expenditures of 
          any funds appropriated in Schedule (7) 
          shall be in support of current 
          CalWORKs recipients. However, if 
          caseloads are insufficient to fully 
          utilize all of the funding in this 
          schedule in a cost-beneficial way, it 
          is intended that up to $5,000,000 of 
          the funds subject to local matching 
          requirements may be allocated for 
          providing postemployment services to 
          former CalWORKs recipients who have 
         been off of cash assistance for no 
          longer than two years to assist them 
          in upgrading skills, job retention, 
          and advancement. Allowable services 
          include direct instruction that cannot 
          be funded under available growth 
          funding, child care to support 
          attendance in these classes consistent 
          with this provision, job development 
          and placement services, and career 
          counseling and assessment activities 
          which cannot be funded through other 
          programs. Child care services may only 
          be provided for periods commensurate 
          with a       student's need for 
          postemployment training within the two- 
          year transitional period. 
           Prior to allocation of funds for 
          postemployment services, the 
          chancellor shall first secure the 
          approval of the Department of Finance 
          for the allocations, complete a 
          cumulative report on the outcomes, 
          activities, and cost-effectiveness of 
          the program no later than November 15, 
          2008, in compliance with the Budget 
          Acts of 1998 (Ch. 324, Stats. 1998) 
          and 1999 (Ch. 50, Stats. 1999) and 
          this act, and shall provide the 
          rationale and justification for the 
          proposed allocation of postemployment 
          services to districts for transitional 
          students. 
           If a district is unable to fully 
          expend its share of child care funds, 
          it may request that the Office of the 
                                                   
Chancellor approve a reallocation to 
          other CalWORKs purposes authorized by 
          this provision, subject to all 
          pertinent limitations and district 
          match required for these purposes 
          under this provision. 
           Of the funds appropriated in Schedule 
          (7) for the Special Services for 
          CalWORKs Recipients Program, no less 
          than $8,000,000 is to provide direct 
          workstudy wage reimbursement for 
          students served under this program, 
          and $1,000,000 is available for campus 
          job development and placement services. 
      18. Funds appropriated in Schedule (7) for 
          the Special Services for CalWORKs 
          Recipients Program have been budgeted 
          to meet the state's Temporary 
          Assistance for Needy Families 
          maintenance-of-effort requirement 
          pursuant to the federal Personal
          Responsibility and Work Opportunity 
          Reconciliation Act of 1996 (P.L. 104- 
          193) and may not be expended in any 
          way that would cause their 
          disqualification as a federally 
          allowable maintenance-of-effort 
          expenditure. 
      19. (a) Funds provided in Schedule (8) for 
              the Foster Care Education Program 
              shall be allocated to provide 
              foster and relative/kinship care 
              education and training. Districts 
              shall ensure that education and 
              training required by Sections 
              1529.1 and 1529.2 of the Health 
              and Safety Code and Section 16003 
              of the Welfare and Institutions 
              Code receive priority. Districts 
              may use any remaining funds for 
              additional parenting skills 
              training. 
          (b) Funds provided in Schedule (8) 
              shall be used for foster parent 
              and relative/kinship care provider 
              education training services 
              consistent with the following 
              criteria: 
              (1) The Chancellor of the 
                  California Community Colleges 
                  shall use these funds 
                  exclusively for foster parent 
                  and relative/kinship care 
                  provider education and 
                  training, as specified by the 
                  chancellor in consultation 
                  with an advisory committee 
                  that includes foster parents, 
                  representatives of statewide 
                  foster parent organizations, 
                  parent and relative/kinship 
                  care providers, and 
                  representatives from the State 
                  Department of Social Services. 
              (2) Acceptance of funds under this 
                  program shall constitute 
                  agreement by the district to 
                  comply with such reporting 
                  requirements, guidelines, and 
                  other conditions for receipt 
                  of funding as the chancellor 
                  may establish. 
              (3) Each college plan for foster 
                  and relative/kinship care 
                  education programs shall 
                  include the provision of 
                  training to facilitate the 
                  development of foster family 
                  homes, small family homes, and 
                  relative/kinship homes to care 
                  for no more than six children 
                  who have special mental, 
                  emotional, developmental, or 
                  physical needs. 
              (4) The State Department of Social 
                  Services shall facilitate the 
                  participation of county 
                  welfare departments in the 
                  foster and relative/kinship 
                  care education program. 
      20. (a) Funds appropriated in Schedule (9) 
              for the Matriculation Program are 
              for the purpose of student 
              matriculation pursuant to Article 
              1 (commencing with Section 78210) 
              of Chapter 2 of Part 48 of 
              Division 7 of Title 3 of the 
              Education Code. 
          (b) Of the amount appropriated in 
              Schedule (9), $20,000,000 shall be 
              allocated to community college 
              districts on a one-to-one matching 
              funds basis to provide 
              matriculation services, including, 
              but not limited to, orientation, 
              assessment, and counseling, for 
              students enrolled in designated 
              noncredit classes and programs who 
              may benefit most, as determined by 
              the Chancellor of the California 
              Community Colleges pursuant to 
              Sections 78216 to 78218, 
              inclusive, of the Education Code. 
      21. The funds in Schedule (13) for the 
          Part-time Faculty Compensation Program 
          shall be allocated solely to increase 
          compensation for part-time faculty 
          from the amounts previously 
          authorized. Funds shall be distributed 
          to districts based on the total actual 
          full-time equivalent students served 
          in the previous fiscal year and 
          include a small district factor as 
          determined by the Chancellor of the 
          California Community Colleges. These 
          funds are to be used to assist 
          districts in making part-time faculty 
          salaries more comparable to full-time 
          salaries for similar work, as 
          determined through each district's 
          local collective bargaining process. 
          These funds shall not supplant the 
          amount of resources each district used 
          to compensate part-time faculty or be 
          used to exceed parity of each part- 
          time faculty employed by each district 
          with regular full-time faculty at the 
          same district, as certified by the 
          chancellor. If a district achieves 
          parity, its allocation may be used for 
          any       other educational purpose. 
      22. (a) $24,197,000 of the funds provided 
              in Schedule (15) for the 
              Telecommunications and Technology 
              Services Program shall be for the 
              purpose of supporting technical 
              and application innovations and 
              for coordination of activities 
              that serve to maximize the utility 
              of the technology investments of 
             the community college system 
              towards improving learning 
              outcomes. Allocations shall be 
              made by the Chancellor of the 
              California Community Colleges, 
              based on criteria and guidelines 
              as developed by the chancellor, on 
              a competitive basis through the 
              RFA/RFP application process for 
              the following purposes: 
              (1) Provision of access to 
                  statewide multimedia hosting 
                  and delivery services for 
                  system colleges and districts. 
              (2) Provision of systemwide 
                  Internet, audio bridging, and 
                  telephony. 
              (3) Technical assistance and 
                  planning, cooperative purchase 
                  agreements, and faculty and 
                  staff development in a manner 
                  consistent with paragraph (3) 
                  of subdivision (b) of 
                  Provision 17 of Item 6870-101- 
                  0001 of Section 2.00 of the
                  Budget Act of 1996 (Ch. 162, 
                  Stats. 1996). 
              (4) Ongoing support for the 
                  California Virtual University 
                  Distance Education Program. 
              (5) Ongoing support for programs 
                  designed to use technology in 
                  assisting accreditation and 
                  the alignment of curricula 
                  across K-20 segments in 
                  California. 
              (6) Support for technology pilots 
                  and ongoing technology 
                  programs and applications that 
                  serve to maximize the utility 
                  and economy of scale of the 
                  technology investments of the 
                  community college system 
                  towards improving learning 
                  outcomes. 
             In addition, a portion of the 
              funds provided in this subdivision 
              shall be available for allocations 
              to districts. It is the intent of 
              the Legislature that these funds 
              be used by colleges to maintain 
              the technology capabilities 
              specified in subdivision (a) of 
              Provision 21 of Item 6870-101-0001 
              of the Budget Act of 2003 (Ch. 
              157, Stats. 2003). These funds 
              shall not supplant existing funds 
              used for those purposes, and 
              colleges shall match maintenance 
              and ongoing costs with other funds 
              as provided by Provision 21(a) of 
              Item 6870-101-0001 of the Budget 
              Act of 2003 (Ch. 157, Stats. 2003). 
          (b) The Office of the Chancellor of 
              the California Community Colleges 
              shall develop the reporting 
              criteria for all programs funded 
              by this item and shall submit that 
              for review along with an annual 
              progress report on program 
              implementation to the Legislative 
              Analyst, the Office of the 
              Secretary for Education, and the 
              Department of Finance no later 
              than December 1 of each year. 
              Reporting shall include summaries 
              of allocations and expenditures by 
              program and by district, where 
              applicable. 
          (c) Of the funds provided in Schedule 
              (15), $2,000,000 is for ongoing 
              support and expansion of the 
              California Partnership for 
              Achieving Student Success (Cal- 
              PASS) program. As a condition of 
              receipt of these funds, the 
              grantee shall submit to the Office 
              of the Chancellor, by October 15 
              of each year, all of the 
              following: (1) a report that 
              includes the numbers and 
             percentages of institutions and 
              school districts that have signed 
              agreements and the number and 
              percentage that have actively 
              submitted data in the current 
              year, (2) the results of an annual 
              program evaluation, as prescribed 
              by the chancellor, that 
              sufficiently documents the value 
              and productivity of the program, 
              and (3) an annual financial audit, 
              as prescribed by the chancellor, 
              that includes an accounting of all 
              funding sources and all uses of 
              funds by funding source. It is the 
              intent of the Legislature that all 
              reporting requirements contained 
              in this subdivision shall be 
              completed using funds provided 
              to the grantee. 
      23. Of the funds provided in Schedule (16) 
          for the Economic and Workforce 
          Development Program: 
          (a) $22,830,000 is allocated for 
              grants for regional business 
              resources assistance and 
             innovation network centers. Each 
              grant awarded to a district for 
              Centers for International 
              Development shall contain 
              sufficient funds, as determined by 
              the Chancellor of the California 
              Community Colleges, for the 
              continued operation of Mexican 
              International Trade Centers. 
          (b) $7,822,000 is allocated for 
              industry-driven regional education 
              and training collaboratives. These 
              grants shall be made on a 
              competitive basis and the award 
              amounts shall not be restricted to 
              any predetermined limit, but 
              rather shall be funded on their 
              individual merits. 
          (c) $3,609,000 is allocated for 
              statewide network leadership, 
              organizational development, 
              coordination, information and 
              support services, or other program 
              purposes. 
          (d) $4,529,000 is available for Job 
              Development Incentive Training 
              programs focused on job creation 
              for public assistance recipients. 
              Any annual savings from this 
              subdivision shall only be 
              available for expenditure for one- 
              time activities listed under 
              subdivision (j) of Section 88531 
              of the Education Code. 
          (e) $8,000,000 is allocated for the 
             establishment of a Responsive 
              Incumbent Worker Training Fund, 
              which will serve to expand the 
              delivery of performance 
              improvement training to employers 
              and incumbent workers in high- 
              growth industries. Funds shall 
              also be used to develop programs 
              that integrate basic skills and 
              career technical education 
              curriculum in ways that provide 
              students with seamless educational 
              coursework that transitions 
              students into high-tech and high- 
              demand job sectors. 
          (f) The following provisions apply to 
              the expenditure of funds within 
              subdivisions (a) and (b): Funds 
              allocated for centers and regional 
              collaboratives shall seek to 
              maximize the use of state funds 
              for subdivisions (g) to (j), 
              inclusive, of Section 88531 of the 
              Education Code. Funds allocated to 
              districts for purposes of 
              subdivisions (g) and (i) of 
              Section 88531 of the Education 
              Code for performance-based 
              training and student internships 
              shall be matched by a minimum of 
              $1 of private business and 
              industry funding for each $1 of 
              state funds. Funds allocated for 
              purposes of subdivision (h) of 
              Section 88531 of the Education 
              Code for credit and noncredit 
              instruction may be transferred to 
              Schedule (1) or (3) to facilitate 
              distribution at the chancellor's 
              discretion. Any funds that become 
              available from network centers due 
              to savings, discontinuance, or 
              reduction of amounts shall first 
              be made available for additional 
              allocations in subdivision (b) to 
              increase the level       of 
              subsidized training otherwise 
              available. 
          (g) Funds allocated by the Board of 
              Governors of the California 
              Community Colleges under this 
              provision may not be used by 
              community college districts to 
              supplant existing courses or 
              contract education offerings. The 
              chancellor shall ensure that funds 
              are spent only for expanded 
              services and shall implement 
              accountability reporting for 
              districts receiving these funds to 
              ensure that training, credit, and 
              noncredit programs remain relevant 
              to business needs. Programs that 
              do not demonstrate continued 
              relevance and support by business 
              shall not be eligible for 
              continued funding. The board of 
              governors shall consider the level 
              of involvement and financial 
              commitments of business and 
              industry as primary factors in 
              making awards. The chancellor 
              shall incorporate grant 
              requirements into the guidelines 
              for audits of economic development 
              grants. 
          (h) Primary objectives of the Economic 
              and Workforce Development Program 
             are to maximize instruction, to 
              prepare students for entry-level 
              jobs, to increase skills of the 
              current workforce, and to 
              stimulate the growth of businesses 
              through training so that more jobs 
              are created. As part of the annual 
              report on the performance of the
              Economic and Workforce Development 
              Program, the chancellor shall 
              provide disaggregated data 
              detailing the funding provided to 
              each economic development regional 
              center and each industry-driven 
              regional education and training 
              collaborative, and to the extent 
              practicable, the total number of 
              hours of contract education 
              services, performance improvement 
              training, credit and noncredit 
              instruction, and job placements 
              created as a result of each center 
              and collaborative. 
      24. (a) The funds appropriated in Schedule 
              (17) for the Transfer Education 
              and Articulation Program are 
              available to support transfer and 
              articulation projects and common 
              course numbering projects. 
          (b) Funding provided to community 
              college districts from Schedule 
              (17) is provided to directly 
              offset any mandated costs claimed 
              by community college districts 
              pursuant to Chapter 737 of the 
             Statutes of 2004. 
      25. (a) $13,673,000 of the funds 
             appropriated in Schedule (18) is 
              available for the following 
              purposes: 
              (1) Scheduled maintenance and 
                  special repairs of facilities. 
                  The Chancellor of the 
                  California Community Colleges 
                  shall allocate funds to 
                  districts on the basis of 
                  actual reported full-time 
                  equivalent students (FTES), 
                  and may establish a minimum 
                  allocation per district. As a 
                  condition for receiving and 
                  expending these funds for 
                  maintenance or special 
                  repairs, a district shall 
                  certify that it will increase 
                  its operations and maintenance 
                  spending from the 1995-96 
                  fiscal year by the amount it 
                  allocates from this 
                  appropriation for maintenance 
                  and special repairs, plus an 
                  equal amount to be provided 
                  from district discretionary 
                  funds. The chancellor may 
                  waive all or a portion of the 
                  matching requirement based 
                  upon a review of a district's 
                  financial condition. The 
                  question of whether a district 
                  has complied with its 
                  resolution shall be reviewed 
                  under the annual audit of that 
                  district. For every $1 a 
                  district expends from this 
                  appropriation for scheduled
                  maintenance and       special 
                  repairs, the recipient 
                  district shall provide $1 in 
                  matching funds. 
              (2) Hazardous substances 
                  abatement, cleanup, and 
                  repairs. 
              (3) Architectural barrier removal 
                  projects that meet the 
                  requirements of the federal 
                  Americans with Disabilities 
                  Act of 1990 (42 U.S.C. Sec. 
                  12101 et seq.) and seismic 
                  retrofit projects limited to 
                  $400,000. Districts that 
                  receive funds for 
                  architectural barrier removal 
                  projects shall provide a $1 
                  match for every $1 provided by 
                  the state. 
          (b) $13,672,000 of the funds 
              appropriated in Schedule (18) is 
              available for replacement of 
              instructional equipment and 
              library materials. For every $3 a 
              district expends from this 
              appropriation for replacement of 
              instructional equipment or library 
              materials, the recipient district 
              shall provide $1 in matching 
              funds. The chancellor may waive 
              all or a portion of the matching 
              requirement based upon a review of 
              a district's financial condition. 
              The funds provided for 
             instructional equipment and 
              library materials shall not be 
              used for personal services costs 
              or operating expenses. The 
              chancellor shall allocate funds to 
              districts on the basis of actual 
              reported FTES and may establish a 
              minimum allocation per district. 
              The question of whether a district 
              has complied with its resolution 
              shall be reviewed under the annual 
              audit of that district. 
          (c) The funds appropriated in Schedule 
              (18) shall be available for 
              expenditure until June 30, 2010. 
      26. Pursuant to Sections 69648.5, 78216,
          and 84850, and subdivision (b) of 
          Section 87108, of the Education Code, 
          the Board of Governors of the 
          California Community Colleges may 
          allocate funds appropriated in 
          Schedules (6), (9), (11), and (19) by 
          grant or contract, or through the 
          apportionment process, to one or more 
          districts for the purpose of providing 
          program evaluation, accountability, 
          monitoring, or program development 
          services, as appropriate under the 
          applicable statute. 
      27. The funds appropriated in Schedule 
          (21) for the Career Technical 
          Education Program are for the purpose 
          of aligning career-technical education 
          curriculum between K-12 and community 
          colleges in targeted industry-driven 
          programs offered through the Economic 
          and Workforce Development Program. 
          Prior to the allocation of these 
          funds, the Chancellor of the 
          California Community Colleges, in 
          conjunction with the State Department 
          of Education, shall submit a proposed 
          expenditure plan for the funds 
          contained in this item, and the 
          rationale therefor, to the Department 
          of Finance by August 1, 2008, for 
          approval. 
           Of the funds appropriated in Schedule 
          (21), $2,500,000 is available for the 
          development and enhancement of health- 
          related career pathway programs in 
          grades 7 to 12, inclusive, and for the 
          articulation and alignment of health- 
          related curriculum between schools 
          with pupils in kindergarten and grades 
          1 to 12, inclusive, and the California 
            Community Colleges. 
      28. The funds appropriated in Schedule 
          (22) for the Campus Childcare Tax 
          Bailout shall be allocated by the 
          Chancellor of the California Community 
          Colleges to community college 
          districts that levied child care 
          permissive override taxes in the 1977- 
          78 fiscal year pursuant to Sections 
          8329 and 8330 of the Education Code in 
          an amount equal to the property tax 
          revenues, tax relief subventions, and 
          state aid required to be made 
          available by the district to its child 
          care and development program for the 
          1979-80 fiscal year pursuant to 
          Section 30 of Chapter 1035 of the 
          Statutes of 1979, increased by any 
          cost-of-living increases granted in 
          subsequent fiscal years. These funds 
          shall be used only for the purpose of 
          community college child care and 
          development programs. 
      29. With regard to the funds appropriated 
          in Schedule (23), Nursing Program 
          Support, all of the following shall 
          apply: 
          (a) $14,000,000 shall be used to 
              provide support for nursing 
              program enrollment and equipment 
              needs consistent with paragraph 
              (2) of subdivision (a) of Section 
              2 of Chapter 514 of the Statutes 
              of 2001. Grant funding for nursing 
              enrollment shall provide a 
              marginal increase in funding in 
              addition to the amount provided 
              for each full-time equivalent 
              student for regular growth in 
              apportionments. 
          (b) $8,100,000 shall be used to 
              provide diagnostic and support 
              services, preentry coursework, 
              alternative program delivery model 
              development, and other services to 
              reduce the incidence of student 
              attrition in nursing programs. 
          (d) The Board of Governors of the 
              California Community Colleges 
              shall develop a request for 
              applications (RFA) to allocate the 
              additional $5,214,000 of funds in 
              subdivision (b) to community 
              college districts. Criteria for 
              assessing each RFA shall include 
              all of the following: 
              (1) The degree to which the funds 
                  provided would be used to 
                  increase student enrollment in 
                  nursing programs beyond the 
                  level of full-time equivalent 
                  students served in the 2007-08 
                  academic year. 
              (2) The district's level of 
                  attrition from nursing 
                  programs and the suitability 
                  of planned expenditures to 
                  address attrition levels. 
              (3) The degree to which funds 
                  provided would be used to 
                  support infrastructure or 
                  equipment needs with the 
                  intent of building capacity 
                  and increasing the number of 
                  nursing students served. 
              (4) For districts with attrition 
                  rates of 15 percent or more, 
                  new grant funding shall focus 
                  on attrition reduction. For 
                  districts with attrition rates 
                  below 15 percent, new grant 
                  funding shall focus on 
                  enrollment expansion. 
         (e) The board of governors shall 
              release the RFA no sooner than 30 
              days after submitting it to the 
             Legislature and the Department of 
              Finance for review. 
          (f) On or before March 1 of each year, 
              the Chancellor of the California 
              Community Colleges shall provide 
              the Legislature and the Department 
              of Finance with a report on the 
              allocation of funding. For each 
              district receiving funding under 
              this item, the report shall 
              include all of the following: (1) 
              the amount of funding received, 
              (2) the number of nursing full- 
              time equivalent students served in 
              the 2006-07 academic year, and the 
              additional number of nursing full- 
              time equivalent students served 
              with funding provided in this item 
              in each subsequent year, (3) the 
              district's attrition and 
              completion rates in the 2006-07 
              academic year and subsequent 
              years, (4) any equipment or 
              infrastructure-related items 
              acquired with the funds 
              appropriated in this item, and (5) 
              the number of new and existing 
              faculty receiving annual stipend 
              awards. 


  SEC. 32.    Item 6870-295-0001 of Section 2.00 of
the Budget Act of 2008 is amended to read:
6870-295-0001--For local assistance, Board
of Governors of the California Community
Colleges (Proposition 98), for
reimbursement, in accordance with provisions
of Section 6 of Article XIII B of the
California Constitution or Section 17561 of
the Government Code, of the costs of any new
program or increased level of service of an
existing program mandated by statute or
executive order, for disbursement by the
Controller...................................      3,000
     Schedule:
     (1) 98.01.000.184-Health Fees
         (Ch. 1, Stats. 1984, 2nd
         Ex. Sess.) (CSM-4206)......     1,000
     (2) 98.01.090.896-Sex
         Offenders: Disclosure
         Requirements (Ch. 908,
         Stats. 1996) (CSM-97-TC-
         15)........................     1,000
     (3) 98.01.028.498-Law
         Enforcement Jurisdiction
         Agreements (Ch. 284,
         Stats. 1998) (CSM-98-TC-
         20)........................     1,000
     Provisions:
     1.  Allocation of funds appropriated in
         this item to the appropriate local
         entities shall be made by the
         Controller in accordance with the
         provisions of each statute or
         executive order that mandates the
         reimbursement of the costs, and
         shall be audited to verify the
         actual amount of the mandated costs
         in accordance with     subdivision
         (d) of Section 17561 of the
         Government Code. Audit adjustments
         to prior year claims may be paid
         from this item. Funds appropriated
         by this item may be used to provide
         reimbursement pursuant to Article 5
         (commencing with Section 17615) of
         Chapter 4 of Part 7 of Division 4 of
         Title 2 of the Government Code.
     2.  If any of the scheduled amounts are
         insufficient to provide full
         reimbursement of costs, the
         Controller may, upon notifying the
         Director of Finance in writing,
         augment those deficient amounts from
         the unencumbered balance of any
         other scheduled amounts therein. No
         order may be issued pursuant to this
         provision unless written
         notification of the necessity
         therefor is provided to the
         chairpersons of the committees in
         each house of the Legislature that
         consider appropriations, and the
         Chairperson of the Joint Legislative
         Budget Committee or his or her
         designee.


  SEC. 33.    Section 12.40 of the Budget Act of
2008 is repealed.  
  SEC. 34.    Section 12.42 is added to the Budget
Act of 2008, to read:
  Sec. 12.42.  (a) The amounts appropriated in the items set forth in
subdivision (b) are each hereby reduced by the percentage determined
by dividing 943,773,000 by the sum of the amounts appropriated in
the items set forth in subdivision (b).
   (b) Subdivision (a) shall apply to Items 6110-103-0001,
6110-104-0001, 6110-105-0001, 6110-107-0001, 6110-108-0001,
6110-113-0001, 6110-119-0001, 6110-122-0001, 6110-123-0001,
6110-124-0001, 6110-125-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-158-0001,
6110-166-0001, 6110-167-0001, 6110-181-0001, 6110-182-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-220-0001, 6110-224-0001,
6110-227-0001, 6110-228-0001, 6110-232-0001, 6110-240-0001,
6110-242-0001, 6110-243-0001, 6110-244-0001, 6110-245-0001,
6110-246-0001, 6110-247-0001, 6110-248-0001, 6110-260-0001,
6110-265-0001, 6110-266-0001, 6110-267-0001, 6110-268-0001, as
amended by Chapter 269, Statutes of 2008 and 6360-101-0001 of Section
2.00 of the Budget Act of 2008.  
  SEC. 35.    Section 35.80 of the Budget Act of
2008 is repealed.  
  SEC. 36.    (a) Notwithstanding any other law,
fifty-two million eight hundred nineteen thousand nine hundred
thirty-five dollars ($52,819,935) is reduced from the amount
appropriated to the Economic Impact Aid Program in Item 6110-128-0001
of Section 2.00 of the Budget Act of 2008 (Chs. 268 and 269, Stats.
2008).
   (b) Notwithstanding any other law, two million dollars
($2,000,000) is reduced from the amount appropriated to the K-12
High-Speed Network in Item 6110-182-0001 of Section 2.00 of the
Budget Act of 2008 (Chs. 268 and 269, Stats. 2008).
   (c) Notwithstanding any other law, two million dollars
($2,000,000) is reduced from the amount appropriated to the Teacher
Incentives National Board Certification Program in Item 6110-195-0001
of Section 2.00 of the Budget Act of 2008 (Chs. 268 and 269, Stats.
2008).
   (d) Notwithstanding any other law, five hundred seventy million
dollars ($570,000,000) is reduced from the amount appropriated to the
State Department of Education for class size reduction in
kindergarten and grades 1 to 3, inclusive, in Item 6110-234-0001 of
Section 2.00 of the Budget Act of 2008 (Chs. 268 and 269, Stats.
2008).
   (e) Notwithstanding any other law, one million dollars
($1,000,000) is reduced from the amount appropriated to the Pupil
Retention Block Grant Program in Item 6110-243-0001 of Section 2.00
of the Budget Act of 2008 (Chs. 268 and 269, Stats. 2008).
   (f) Notwithstanding any other law, one million dollars
($1,000,000) is reduced from the amount appropriated to the
Certificated Staff Mentoring Program in Item 6110-267-0001 of Section
2.00 of the Budget Act of 2008 (Chs. 268 and 269, Stats. 2008).
   (g) Notwithstanding any other law, one million dollars
($1,000,000) is reduced from the amount appropriated to the
California School Paraprofessional Teacher Training Program in Item
6360-101-0001 of Section 2.00 of the Budget Act of 2008 (Chs. 268 and
269, Stats. 2008).  
  SEC. 37.    Notwithstanding any other provision of
law, the unobligated balances from the following items are
reappropriated to the State Department of Education for CalWORKs
Stage 2 Child Care services, in augmentation of, and for the purposes
specified in, Schedule (1.5) (e) of Item 6110-196-0001 of Section
2.00 of the Budget Act of 2008 (Chs. 268 and 269, Stats. 2008):
   (a) Forty-three million two thousand six hundred fifteen dollars
($43,002,615) from Schedule (1) of Item 6110-196-0001 of Section 2.00
of the Budget Act of 2007 (Chs. 171 and 172, Stats. 2007).
   (b) Fifty-one million thirty-six thousand five hundred fifty-three
dollars ($51,036,553) from Schedule (1.5)(a) of Item 6110-196-0001
of Section 2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats.
2007).
   (c) Two million eight hundred forty-five thousand six hundred
forty-seven dollars ($2,845,647) from Schedule (1.5)(c) of Item
6110-196-0001 of Section 2.00 of the Budget Act of 2007 (Chs. 171 and
172, Stats. 2007).
   (d) Six million three hundred ninety-nine thousand seven hundred
one dollars ($6,399,701) from Schedule (1.5)(d) of Item 6110-196-0001
of Section 2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats.
2007).
   (e) Two hundred seventeen thousand three hundred fifty-three
dollars ($217,353) from Schedule (1.5)(g) of Item 6110-196-0001 of
Section 2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats.
2007).
   (f) Four million one hundred twenty-three thousand five hundred
seventy-two dollars ($4,123,572) from Schedule (1.5)(i) of Item
6110-196-0001 of Section 2.00 of the Budget Act of 2007 (Chs. 171 and
172, Stats. 2007).
   (g) Two hundred seventy-four thousand three hundred eighty-one
dollars ($274,381) from Schedule (1.5)(j) of Item 6110-196-0001 of
Section 2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats.
2007).
   (h) Three thousand seventy-six dollars ($3,076) from Schedule
(1.5)(k) of Item 6110-196-0001 of Section 2.00 of the Budget Act of
2007 (Chs. 171 and 172, Stats. 2007).
   (i) One hundred sixteen thousand one hundred fifteen dollars
($116,115) from Schedule (1.5)(n) of Item 6110-196-0001 of Section
2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats. 2007).
 
  SEC. 38.    (a) The sum of nine hundred five
million seven hundred thousand dollars ($905,700,000) is hereby
appropriated from the General Fund to the State Department of
Education. This appropriation reflects the portion of the February
2010 payment for the class size reduction in kindergarten and grades
1 to 3, inclusive, and the June 2010 principal apportionment that is
to be deferred until July 2010 and attributed to the 2010-11 fiscal
year. Notwithstanding any other law, the department shall encumber
the funds appropriated in this section by July 31, 2010. It is the
intent of the Legislature that, by extending the encumbrance
authority for the funds appropriated in this section to July 31,
2010, the funds will be treated in a manner consistent with Section
1.80 of the Budget Act of 2009. The appropriation is made in
accordance with the following schedule:
   (1) Six million two hundred twenty-seven thousand dollars
($6,227,000) for apprenticeship programs to be expended consistent
with the requirements specified in Item 6110-103-0001 of Section 2.00
of the Budget Act of 2009.
   (2) Ninety million one hundred seventeen thousand dollars
($90,117,000) for supplemental instruction to be expended consistent
with the requirements specified in Item 6110-104-0001 of Section 2.00
of the Budget Act of 2009. Of the amount appropriated by this
paragraph, fifty-one million sixty-one thousand dollars ($51,061,000)
shall be expended consistent with Schedule (1) of Item 6110-104-0001
of Section 2.00 of the Budget Act of 2009, twelve million three
hundred thirty thousand dollars ($12,330,000) shall be expended
consistent with Schedule (2) of that item, four million six hundred
ninety thousand dollars ($4,690,000) shall be expended consistent
with Schedule (3) of that item, and twenty-two million thirty-six
thousand dollars ($22,036,000) shall be expended consistent with
Schedule (4) of that item.
   (3) Thirty-nine million six hundred thirty thousand dollars
($39,630,000) for regional occupational centers and programs to be
expended consistent with the requirements specified in Schedule (1)
of Item 6110-105-0001 of Section 2.00 of the Budget Act of 2009.
   (4) Four million two hundred ninety-four thousand dollars
($4,294,000) for the Gifted and Talented Pupil Program to be expended
consistent with the requirements specified in Item 6110-124-0001 of
Section 2.00 of the Budget Act of 2009.
   (5) Forty-five million eight hundred ninety-six thousand dollars
($45,896,000) for adult education to be expended consistent with the
requirements specified in Schedule (1) of Item 6110-156-0001 of
Section 2.00 of the Budget Act of 2009.
   (6) Four million seven hundred fifty-one thousand dollars
($4,751,000) for community day schools to be expended consistent with
the requirements specified in Item 6110-190-0001 of Section 2.00 of
the Budget Act of 2009.
   (7) Five million nine hundred forty-seven thousand dollars
($5,947,000) for categorical block grants for charter schools to be
expended consistent with the requirements specified in Item
6110-211-0001 of Section 2.00 of the Budget Act of 2009.
   (8) Thirty-eight million seven hundred twenty thousand dollars
($38,720,000) for the School Safety Block Grant to be expended
consistent with the requirements specified in Schedule (1) of Item
6110-228-0001 of Section 2.00 of the Budget Act of 2009.
   (9) Five hundred seventy million dollars ($570,000,000) for class
size reduction in kindergarten and grades 1 to 3, inclusive, to be
expended consistent with the requirements specified in Item
6110-234-0001 of Section 2.00 of the Budget Act of 2009.
   (10) One hundred million one hundred eighteen thousand dollars
($100,118,000) for the Targeted Instructional Improvement Grant
Program to be expended consistent with the requirements specified in
Item 6110-246-0001 of Section 2.00 of the Budget Act of 2009.
   (b) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2010-11 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2010-11 fiscal year.  
  SEC. 39.    (a) Notwithstanding Sections 84320,
84321, and 84321.5 of the Education Code and any other law that
covers the regulations adopted by the Chancellor of the California
Community Colleges to disburse funds, two hundred million dollars
($200,000,000) from the payment of apportionments to districts
pursuant to Sections 84320, 84321, and 84321.5 of the Education Code
for July 2009, shall be deferred to October 2009.
   (b) Notwithstanding any other law, one billion dollars
($1,000,000,000) from the payment of apportionments pursuant to
Section 14041 of the Education Code for July 2009, to local
educational agencies that maintain kindergarten and any of grades 1
to 12, inclusive, shall be deferred to October 2009.
   (c) Notwithstanding any other law, one billion five hundred
million dollars ($1,500,000,000) from the payment of apportionments
pursuant to Section 14041 of the Education Code for August 2009, to
local educational agencies that maintain kindergarten or any of
grades 1 to 12, inclusive, shall be deferred to October 2009.
   (d) Notwithstanding subdivisions (b) and (c) and subject to the
approval of the Director of Finance, the Controller shall issue
warrants pursuant to Section 14041 of the Education Code that include
the full amount of the apportionment payments for the months of July
and August for a local educational agency for which the county
superintendent of schools certifies to the Superintendent of Public
Instruction and to the Director of Finance on or before May 15, 2009,
that the deferral of warrants pursuant to subdivisions (b) and (c)
will result in qualifying the local educational agency for an
emergency apportionment pursuant to Article 2 (commencing with
Section 41320) of Chapter 3 of Part 24 of Division 3 of Title 2 of
the Education Code.
   (e) Notwithstanding subdivision (a) and subject to the approval of
the Director of Finance, the Controller shall issue warrants
pursuant to Sections 84320, 84321, and 84321.5 of the Education Code
that include the full amount of the apportionment payments for the
month of July for a community college for which the Chancellor of the
California Community Colleges determines, in consultation with the
Director of Finance, on or before May 15, 2008, that the deferral of
warrants pursuant to subdivision (a) will present an imminent threat
to the fiscal integrity and security of the community college.
   (f) This section shall apply to payments in the 2009-10 fiscal
year only.  
  SEC. 40.    (a) Notwithstanding Sections 84320,
84321, and 84321.5 of the Education Code and any other law that
covers the regulations adopted by the Chancellor of the California
Community Colleges to disburse funds, the payment of apportionments
to districts pursuant to Sections 84320, 84321, and 84321.5 of the
Education Code for the months of January and February, in the amount
of one hundred fifteen million dollars ($115,000,000) for each month,
and the months of March and April, in the amounts of fifty-five
million dollars ($55,000,000) for each month, shall be deferred to
July. The total amount of these payments deferred to the month of
July shall be three hundred forty million dollars ($340,000,000).
   (b) This section is retroactively operative commencing with the
2008-09 fiscal year.  
  SEC. 41.    (a) The sum of five hundred forty
million dollars ($540,000,000) is hereby appropriated from the
General Fund to the Board of Governors of the California Community
Colleges for apportionments to community college districts, for
expenditure during the 2010-11 fiscal year, to be expended in
accordance with Schedule (1) of Item 6870-101-0001 of Section 2.00 of
the Budget Act of 2009.
   (b) The disbursal of funds appropriated in subdivision (a) shall
be deferred until July of the 2010-11 fiscal year. This appropriation
and deferment represent one hundred fifteen million dollars
($115,000,000) of the January apportionment to community college
districts, one hundred fifteen million dollars ($115,000,000) of the
February apportionment to community college districts, fifty-five
million dollars ($55,000,000) of the March apportionment to community
college districts and fifty-five million dollars ($55,000,000) of
the April apportionment to community college districts, and two
hundred million dollars ($200,000,000) of the June apportionment to
community college districts.
   (c) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202 of the Education Code,
for the 2010-11 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2010-11 fiscal year.  
  SEC. 42.    (a) For the 2008-09 and 2009-10 fiscal
years, in order to provide local budgeting flexibility as a result
of budget reductions made by the Legislature for the 2008-09 and
2009-10 fiscal years, the governing board of a school district or
county office of education may use up to 100 percent of the balances,
as of June 30, 2008, of restricted accounts in its general fund or
cafeteria fund, excluding restricted reserves committed for capital
outlay, bond funds, sinking funds, and federal funds, and excluding
balances in the following programs:
   (1) Economic Impact Aid (Article 2 (commencing with Section 54020)
of Chapter 1 of Part 29 of Division 4 of Title 2 of the Education
Code).
   (2) Targeted Instructional Improvement Grant (former Chapter 2.5
(commencing with Section 54200) of Part 29 of Division 4 of Title 2
of the Education Code).
                                          (3) Instructional
materials.
   (4) Special education.
   (5) Quality Education Investment Act of 2006 (Article 3.7
(commencing with Section 52055.700) of Chapter 6.1 of Part 28 of
Division 4 of Title 2 of the Education Code).
   (6) California High School Exit Exam Intensive Intervention
Program.
   (7) Home-to-school transportation.
   (b) For purposes of this section, balances of restricted accounts
do not include the amounts deferred from the 2006-07 fiscal year to
the 2007-08 fiscal year or the amounts deferred from the 2007-08
fiscal year to the 2008-09 fiscal year.
   (c) A governing board shall not use the ending balance in any
restricted account if that use would violate a federal maintenance of
effort requirement.
   (d) This section does not obligate the state to refund or repay
funds used pursuant to this section. If a school district uses an
ending balance in a restricted account that consists, in whole or in
part, of funds reimbursed to the district as a subvention of funds
for a state-mandated local program, the school district shall not
submit a claim to the state for a subsequent reimbursement of the
funds that were reimbursed pursuant to Section 6 of Article XIII B of
the California Constitution and used pursuant to the authority
granted to a school district pursuant to this section.
   (e) A governing board that elects to use balances in restricted
accounts pursuant to this section shall report to the Superintendent,
in a manner determined by the Superintendent, regarding the programs
and amounts of restricted balances used pursuant to subdivision (a).
The Superintendent shall report statewide information and
information for each school district and county office of education
to the Joint Legislative Budget Committee by October 31, 2009.
 
  SEC. 43.    (a) Notwithstanding any other
provision of law, in order to effectuate the General Fund savings
associated with the reductions in appropriations made by this act,
the Superintendent of Public Instruction shall reduce the principal
apportionment for school districts and county offices of education
for the 2008-09 fiscal year, as necessary, if both of the following
occur during the 2008-09 fiscal year:
   (1) The Controller has disbursed funds from the appropriations
reduced by this act in amounts greater than the amounts remaining in
those appropriations following the reductions.
   (2) The Superintendent determines there is no other way to recover
the funds that have been disbursed prior to the end of the 2008-09
fiscal year.
   (b) This section shall be broadly construed to effectuate its
purpose.  
  SEC. 44.    (a) Notwithstanding Sections 42238.1
and 42238.15 of the Education Code or any other law, the
cost-of-living adjustment for Items 6110-104-0001, 6110-105-0001,
6110-119-0001, 6110-122-0001, 6110-124-0001, 6110-128-0001,
6110-150-0001, 6110-156-0001, 6110-158-0001, 6110-161-0001,
6110-167-0001, 6110-181-0001, 6110-189-0001, 6110-190-0001,
6110-193-0001, 6110-196-0001, 6110-203-0001, 6110-209-0001,
6110-211-0001, 6110-224-0001, 6110-232-0001, 6110-234-0001,
6110-244-0001, and 6110-246-0001 of Section 2.00 of the Budget Act of
2009 is zero percent for the 2009-10 fiscal year. All funds
appropriated in the Budget Act of 2009 in the items identified in
this section are in lieu of the amounts that would otherwise be
appropriated pursuant to any other provision of law.
   (b) Notwithstanding Section 42238.1 of the Education Code or any
other law, for purposes of Section 48664 of the Education Code the
cost-of-living adjustment is zero percent for the 2009-10 fiscal
year.  
  SEC. 45.    Notwithstanding any other provision of
law, the funds appropriated pursuant to Items 6110-103-0001,
6110-104-0001, 6110-105-0001, 6110-124-0001, 6110-156-0001,
6110-158-0001, 6110-161-0001, 6110-190-0001, 6110-211-0001,
6110-234-0001, and 6110-243-0001 of Section 2.00 of the Budget Act of
2009 shall be encumbered by July 31, 2010. This one-month extension
of encumbrance authority is provided due to the effect of the
deferral of the June 2010 principal apportionment on the budget items
specified in this section. It is the intent of the Legislature that,
by extending the encumbrance authority for the funds identified in
this section to July 31, 2010, the funds will be treated in a manner
consistent with Section 1.80 of the Budget Act of 2009. 
   SEC. 46.   SEC. 23.   This act addresses
the fiscal emergency declared by the Governor by proclamation on
December 19, 2008, pursuant to subdivision (f) of Section 10 of
Article IV of the California Constitution. 
  SEC. 47.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   In order to make the necessary statutory changes to implement the
Budget Act of 2008 at the earliest time possible, it is necessary
that this act take effect immediately.