Zaragoza-Diaz & Associates
Martha Zaragoza-Diaz
MEMORANDUM
To: Delta Kappa Gamma-Chi State Members
From: Martha Zaragoza Diaz, Lobbyist
Re: Legislative Update
Date: April 30, 2012
Cc: Hazel Powell, Chairperson Professional Affairs Commitee
______
I. Legislation Update
Bills that have successfully passed out of their respective policy committees are now in their respective fiscal committees. In the Assembly, bills that have a general fund cost or pressure of $150,000 dollars or more will automatically be placed on the “Suspense File” of the Assembly Appropriations Committee. Senate bills with a general fund cost or pressure of $50,000 dollars or more will be placed on the “Suspense File” in the Senate Appropriations Committee.
Significant amendments will be made to these bills in order to eliminate or reduce the costs identified for each bill on the suspense file. Then the “Leadership” of both houses will determine which bills will actually get off the “suspense file” in the Assembly and in the Senate. All of this is predicated upon the fact that there will be funding available for new legislation (as determined by the May Revise figures).
On May 15, 2012 (or there about), the Department of Finance will release its “May Revise” figures revealing whether sufficient revenues have been generated to deal with the state’s budge deficit. If it is determined that not enough revenues have been generated, then the Governor will be proposing additional cuts to all policy areas. The May Revise figures will also determine how much money will be made available, if any, for new legislation.
Stay tune for further updates on legislation.
Page 2
Legislative Update Report
April 30, 2012
II. State Budget
The Budget Subcommittees on School Finance in both houses continue to meet
and discuss the Governor’s budget 2012-13 state budget proposal. The legislative budget sub-committees on school finance have not taken action on major budget issues & policy changes due to the fact that upon receipt of the “May Revise”, the governor will be proposing changes to his proposed budget. The “May Revise” is released by the governor usually by mid-May. It provides an economic update on California’s economy and how much additional revenue has been generated since January 1, 2012. Depending on the “May Revise” figures, the governor may need to proposed additional cuts to state programs including public education.
As you are aware, the governor has proposed several major policy changes through the budget, such as implementing a new school finance proposal ( the weighted student formula), expanding the flex program and the creation of a mandate block grant program.
There are many significant elements that are not included in the proposed weighted student formula such as: 1) what accountability measures will be included (student outcomes) in exchange for this complete flexibility of dollars,
2) what mechanism will be in place to ensure the dollars follow the students that generate the additional dollars via the weights ---such as the proposed 37% weight for economically disadvantaged students and English learners, 3) flexibility of dollars shall be proportionate to the amount of funding received over the five years 4) inclusion of an accounting mechanism that will clearly track how funding was spent and to which students, 5) what will be the accountability measure(s) for schools that cannot show improved academic progress of students and 6) an evaluation of this new funding formula should occur after 3 years and then after five.
There has also been dissatisfaction expressed by stakeholders that major policy changes are proposed without the active participation or input of the legislative policy committees and that at some point in the budgetary process the policy committees should weigh in on the these budgetary proposals. In addition to all of this debate is the fact that several tax initiatives impacting school funding will be before the California voters in November 2012.
So stay tune for more information on the budget.
Page 3
Legislative Update Report
April 30, 2012
III. California Department of Education Activities
a. Implementation of the State Common Core Standards
AB 250 (Brownley) signed by the Governor (Chapter 608, Statutes of 2011)
is known as the “Curriculum and Reform Act” because it addresses the development and adoption of the curriculum frameworks and instructional materials, professional development and assessments. It clarifies the intent that the statewide assessment is to conform to assessments specified in the reauthorization of the ESEA or any other federal law that replaces the ESEA.
Needless to say this is a very significant piece of legislation due to the impact it will have on our students, teachers and schools for many years to come. Here is the URL to the bill: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0201-0250/ab_250_bill_20111008_chaptered.pdf
An Advisory Committee has been established to assist the State Superintendent of Instruction with the implementation of the common core standards however I do not have the list of the members of this committee at this time and will have to forward to you at a later time.
A calendar of meeting dates and locations are available on the CDE website. Several meetings have taken place already. The next meeting is scheduled for May 15, 2012 in Contra Costa COE with the next Advisory Committee meeting scheduled for May 22nd and 23rd.
Again, these are very important meetings. Please attend if you can. Contact Jessica Barr, CDE Lead Staff assigned to AB 250 at ,gov or 916-319-0364. Again stay tune for updates.
Page 4
Legislative Update Report
April 30, 2012
IV. 2012 Ballot Initiatives
There are several proposed initiatives that have been circulating for the purpose of obtaining signatures so they can qualify for placement on either
the June 2012 Ballot or on the November 2012 Ballot. If approved by the voters, several of these proposals will seriously impact the state’s economic situation. Below are descriptions of the initiatives that have qualified for the
June 2012 Ballot and initiatives that are still collecting signatures to qualify for placement on the November 2012 Ballot. Please note these are not all of the initiatives that have either qualified for the June 2012 ballot or that will qualify for the November 2012 ballot.
There are several competing tax initiatives headed for the November 6, 2012 ballot. They include the Munger tax increase initiative and Governor Jerry Brown’s tax increase initiative which has now merged with the “Millionaire’s Tax” into the Sales and Income Tax Increase Initiative.
Supporters of the Munger proposal and supporters of the Governor’s proposal are viewed by many in California as competing because if more than one tax increase initiative is on the November 2012, they collectively have a greater chance of losing than if just one tax increase proposition is on the ballot.
The two tax initiatives differ in some respects, but in general, if enacted the initiative will:
Ø Increase state income tax rates for most Californians, resulting in increased revenues to the state of about $10 billion a year.
Ø The state income tax increase would end after 12 years, unless voters reauthorize it.
Ø Earmark most of the new revenue of $10 billion for public school districts and early childhood development programs.
The California State PTA supports the Munger Proposition and CTA and CFT support the Governor’s Tax Initiative.
Page 5
Legislative Report
April 30, 2012
June 2012 Ballot
1444 (09-0097) Imposes Additional Tax on Cigarettes for Cancer Research
Qualified 8/24/2010
Proponent: N. Eugene Hill (916-442-2952)
Imposes additional five cent tax on each cigarette distributed ($1.00 per pack), and an equivalent tax increase on other tobacco products, to fund cancer research and other specified purposes. Requires tax revenues be deposited into a special fund to finance research and research facilities focused on detecting, preventing, treating, and curing cancer, heart disease, emphysema, and other tobacco-related diseases, and to finance prevention programs. Creates nine-member committee charged with administering the fund. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increase in new cigarette tax revenues of about $855 million annually by 2011- 12, declining slightly annually thereafter, for various health research and tobacco-related programs. Increase of about $45 million annually to existing health, natural resources, and research programs funded by existing tobacco taxes. Increase in state and local sales taxes of about $32 million annually. (09-0097.) (Full Text)
November 2012
1487 (11-0010) Prohibits Political Contributions by Payroll Deductions.
Prohibitions on Contributions to Candidates
Qualified: 12/05/2011
Proponent: Ashlee N. Titus c/o Thomas Hiltachk (916-442-7757)
Restricts union political fundraising by prohibiting use of payroll-deducted funds for political purposes. Same use restriction would apply to payroll deductions, if any, by corporations or government contractors. Permits voluntary employee contributions to employer or union committees if authorized yearly, in writing.
Prohibits unions and corporations from contributing directly or indirectly to candidates and candidate-controlled committees. Other political expenditures remain unrestricted, including corporate expenditures from available resources not limited by payroll deduction prohibition. Limits government contractor contributions to elected officers or officer-controlled committees. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state implementation and enforcement costs of up to hundreds of thousands of dollars annually, potentially offset in part by revenues from fines. (11-0010.) (Full Text)
Page 6
Legislative Report
April 30, 2012
Initiatives Pending Qualification
1578 (12-0009) Temporary Taxes to Fund Education
Circulation Deadline: 08/13/2012 Signatures Required: 807,615
Proponent: Thomas A. Willis c/o Karen Getman (510-346-6200)
Increases personal income tax on annual earnings over $250,000 for seven years. Increases sales and use tax by ¼ cent for four years. Allocates temporary tax revenues 89 percent to K-12 schools and 11 percent to community colleges. Bars use of funds for administrative costs, but provides local school governing boards discretion to decide, in open meetings and subject to annual audit, how funds are to be spent. Guarantees funding for public safety services realigned from state to local governments. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state revenues over the next seven fiscal years. Estimates of the revenue increases vary—from $6.8 billion to $9 billion for 2012-13 and from $5.4 billion to $7.6 billion, on average, in the following five fiscal years, with lesser amounts in 2018-19. These revenues would be available to (1) pay for the state's school and community college funding requirements, as increased by this measure, and (2) address the state's budgetary problem by paying for other spending commitments. Limitation on the state's ability to make changes to the programs and revenues shifted to local governments in 2011, resulting in a more stable fiscal situation for local governments. (12-0009) (Full Text)
1575 (11-0100) Tax for Education and Early Childhood Education
Circulation Deadline: 07/16/2012 Signatures Required: 504, 760
Proponent: Molly Munger c/o Remcho, Johansen & Purcell 510-346-6200
Increases personal income tax rates for annual earnings over $7,316 using sliding scale from .4% for lowest individual earners to 2.2% for individuals earning over $2.5 million, ending after twelve years. During first four years, 60% of revenues go to K-12 schools, 30% to repaying state debt, and 10% to early childhood programs. Thereafter, allocates 85% of revenues to K-12 schools, 15% to early childhood programs. Provides K-12 funds on school specific, per-pupil basis, subject to local control, audits, and public input. Prohibits state from directing or using new funds. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state personal income tax revenues beginning in 2013 and ending in 2024. Estimates of the revenue increases vary from $10 billion to $11 billion per fiscal year beginning in 2013-14, tending to increase over time. The 2012-13 revenue increase would be about half this amount. Until the end of 2016-17, 60 percent of revenues would be dedicated to K-12 education and 10 percent would be provided to early care
Page 7
Legislative Report
April 30, 2012
and education programs. These allocations would supplement existing funding for these programs. In 2017-18 and subsequent years, 85 percent would be provided to K-12 education and 15 percent to early care and education. General Fund savings on debt-service costs of about $1.5 billion in 2012-13 and $3 billion in 2013-14, with savings tending to grow thereafter until the end of 2016-17. In 2015-16 and subsequent years with stronger growth in state personal income tax revenues, some of the revenues raised by this measure—several hundred million dollars per year— would be used for debt-service costs, resulting in state savings. (11-0100) (Full Text)
372 Florin Road, Suite 311 Sacramento, CA 95831
Phone: 916 395-2616 Fax: 916 421-1099
Email: