BILL NUMBER: AB 47 CHAPTERED 09/13/02 CHAPTER 519 FILED WITH SECRETARY OF STATE SEPTEMBER 13, 2002 APPROVED BY GOVERNOR SEPTEMBER 13, 2002 PASSED THE ASSEMBLY AUGUST 19, 2002 PASSED THE SENATE AUGUST 14, 2002 AMENDED IN SENATE AUGUST 5, 2002 AMENDED IN SENATE JUNE 24, 2002 AMENDED IN ASSEMBLY MAY 31, 2001 AMENDED IN ASSEMBLY MAY 9, 2001 AMENDED IN ASSEMBLY APRIL 30, 2001 INTRODUCED BY Assembly Member Simitian (Principal coauthor: Assembly Member Diaz) DECEMBER 4, 2000 An act to amend Sections 2550.2 and 2550.7 of, to amend and repeal Sections 2550.5 and 2550.6 of, and to add Section 2550.1 to, the Education Code, relating to juvenile court schools and county community schools, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 47, Simitian. School finance: juvenile court schools and county community schools. Existing law sets forth a method for making computations to determine the revenue limits for juvenile court school programs operated by county superintendents of schools. Certain community schools are eligible to receive funding at that same rate. Existing law sets forth a method for equalizing the revenue limits for juvenile court school programs and certain community school programs, over the 1996-97, 1997-98, 1998-99, 1999-2000, and 2000-01 fiscal years. This bill commencing with the 2002-03 fiscal year would require a cost-of-living adjustment to be made to the revenue limits for these schools. The bill would make the provisions requiring equalization of the revenue limits for these schools inoperative in fiscal years in which the cost-of-living adjustment is made. This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares that revenue limit equalization for juvenile court schools and county community schools has been effectively accomplished as of June 30, 2002. SEC. 2. Section 2550.1 is added to the Education Code, to read: 2550.1. (a) Commencing with the 2002-03 fiscal year, and each fiscal year thereafter, for juvenile court school programs operated by county superintendents of schools pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 and for county community school programs operated by county superintendents of schools pursuant to Chapter 6.5 (commencing with Section 1980) of Part 2, the Superintendent of Public Instruction shall make the following computations: (1) Apply an inflation adjustment equal to the percentage increase applied to the statewide average revenue limit for school districts pursuant to Section 42238.1, multiplied by the revenue limits of the prior fiscal year for each juvenile court school program and for each county community school program, including programs with average daily attendance for pupils enrolled pursuant to subdivision (c) of Section 1981 that exceeds the average daily attendance claimed in the 1991-92 fiscal year. (2) Multiply the revenue limits per unit of average daily attendance computed in paragraph (1) by the number of units of average daily attendance for each juvenile court school program and county community school program operated in that same fiscal year. (b) Cost-of-living adjustments to revenue limits per unit average daily attendance in juvenile court school and county community school programs operated by county superintendents of schools shall be computed pursuant to paragraph (1) of subdivision (a) in fiscal years in which appropriations are provided for that purpose. SEC. 3. Section 2550.2 of the Education Code is amended to read: 2550.2. The Superintendent of Public Instruction shall make the following computations to determine the revenue limits for juvenile court school programs operated by county superintendents of schools pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27: (a) For the 1985-86 fiscal year and each fiscal year thereafter, add to the prior fiscal year revenue limit per unit of average daily attendance for juvenile court school programs all of the following amounts: (1) An equalization adjustment for revenue limits per unit of average daily attendance that in the 1988-89 fiscal year were below the statewide average for that fiscal year, computed as follows: (A) Subtract the county's 1988-89 fiscal year revenue limit per unit of average daily attendance from the statewide average revenue limit for juvenile court school programs for the 1988-89 fiscal year. (B) Notwithstanding subdivision (c), for the 1989-90 fiscal year, the amount calculated pursuant to subparagraph (A). (2) An inflation adjustment equal to the percentage increase applied to the statewide average revenue limit for school districts multiplied by the statewide average revenue limit for juvenile court school programs for the prior fiscal year. (b) The Superintendent of Public Instruction shall multiply the revenue limit per unit of average daily attendance computed in subdivision (a) by the number of units of average daily attendance for county juvenile court school programs for the current fiscal year. (c) In no event shall the amount computed pursuant to paragraph (1) of subdivision (a) exceed the amount computed pursuant to paragraph (2) of subdivision (a). (d) As a condition of receiving an equalization adjustment pursuant to paragraph (1) of subdivision (a), the county superintendent of schools shall certify to the Superintendent of Public Instruction that all the funds received pursuant to this section are expended solely for purposes of operating juvenile court school programs pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 or of serving pupils enrolled in community schools pursuant to subdivision (c) of Section 1981. (e) In any fiscal year in which Section 2550.1 is operative, this section shall be inoperative. SEC. 4. Section 2550.5 of the Education Code is amended to read: 2550.5. (a) For each fiscal year to which Section 2550.6 applies, revenue limit increases calculated pursuant to subdivisions (b) to (f), inclusive, of Section 2550.6 and revenue limit increases made pursuant to Section 2550.7 shall be funded from the amounts available for the inflation adjustment calculated pursuant to paragraph (2) of subdivision (a) of Section 2550.2. Those amounts shall be allocated as set forth in this section. (b) The revenue limit increases calculated pursuant to subdivisions (b) to (f), inclusive, of Section 2550.6 shall be funded as follows: (1) The revenue limit increases shall be funded from the funds derived from any amounts available for the inflation adjustment calculated pursuant to paragraph (2) of subdivision (a) of Section 2550.2. (2) If no funds from the inflation adjustment are available, or if the funds available for the inflation adjustment are not sufficient to fully fund the revenue limit increases, the Superintendent of Public Instruction shall reduce the revenue limit increases for the fiscal year in which the funds are insufficient on a pro rata basis. (c) In the first fiscal year that the funds that are available for the inflation adjustment calculated pursuant to paragraph (2) of subdivision (a) of Section 2550.2 exceed the amount needed to fully fund the revenue limit increases calculated pursuant to subdivisions (b) to (f), inclusive, of Section 2550.6, the Superintendent of Public Instruction shall, from those excess funds, allocate the amounts necessary to increase the revenue limits of county superintendents of schools pursuant to Section 2550.7. If those funds are not sufficient to fully fund the revenue limit increases described in Section 2550.7, the Superintendent of Public Instruction shall make allocations for those revenue limit increases on a pro rata basis. The Superintendent of Public Instruction shall, in each subsequent fiscal year that those excess funds are available, continue to allocate funds for the purposes of Section 2550.7 until the revenue limits are increased to the level contemplated by that section. (d) If after making the allocation described in subdivision (c) excess funds are available, the Superintendent of Public Instruction shall, for the purpose of making an inflation adjustment, allocate those funds in a uniform amount per unit of average daily attendance for each school receiving a revenue limit increase pursuant to the relevant subdivision of subdivision (b), (c), (d), (e), or (f) of Section 2550.6, with the uniform amount per unit of average daily attendance reduced as necessary and the amount thereby saved allocated to any school that does not receive a revenue limit increase pursuant to the relevant subdivision (b), (c), (d), (e), or (f) of Section 2550.6 to ensure that it has a funding level per unit of average daily attendance in the then current fiscal year that is not less than the highest funding level per unit of average daily attendance in the then current fiscal year for schools that receive a revenue limit increase pursuant to the relevant subdivision (b), (c), (d), (e), or (f) of Section 2550.6. (e) If in the 2000-01 fiscal year there are not sufficient funds available to fully fund revenue limits for schools subject to Section 2550.6 at the level calculated pursuant to subdivision (f) of Section 2550.6, then the Superintendent of Public Instruction shall continue to equalize revenue limits per unit of average daily attendance for those schools in a manner consistent with Section 2550.6 in the 2001-02 fiscal year, and in any subsequent fiscal year, as necessary, and consistent with subdivision (f) of Section 2550.6. (f) The equalization of revenue limits per unit of average daily attendance pursuant to Section 2550.6 shall be complete in the fiscal year in which the revenue limit per unit of average daily attendance, as computed pursuant to Section 2550.6, for each school subject to this section is within the following range: (1) Not less than the statewide average revenue limit per unit of average daily attendance for pupils enrolled in schools for the prior fiscal year multiplied by the inflation adjustment computed pursuant to paragraph (2) of subdivision (a) of Section 2550.2 for the current fiscal year. (2) Not more than the product calculated in paragraph (1) multiplied by 1.15. (g) For the purpose of this section, "school" or "schools" means juvenile court schools operated by a county superintendent of schools pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27, and county community schools described in subdivision (c) of Section 1981, that are subject to Section 2550.6. (h) In any fiscal year in which Section 2550.1 is operative, this section shall be inoperative. SEC. 5. Section 2550.6 of the Education Code is amended to read: 2550.6. The revenue limit per unit of average daily attendance for each juvenile court school operated by a county superintendent of schools pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 and each county community school described in subdivision (c) of Section 1981 shall be subject to the following equalization adjustments: (a) For the purposes of determining the revenue limit per unit of average daily attendance, make the following computations: For the 1996-97 fiscal year, compute the statewide average revenue limit per unit of average daily attendance calculated pursuant to Section 2550.2 for the 1995-96 fiscal year for pupils enrolled in juvenile court schools pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27 and for pupils enrolled in county community schools pursuant to subdivision (c) of Section 1981, as that section existed on June 30, 1996. (b) If the revenue limit per unit of average daily attendance for the 1995-96 fiscal year determined pursuant to Section 2550.2 for the county superintendent of schools is less than the amount determined in subdivision (a), make the following computations: (1) From the amount determined in subdivision (a), subtract the revenue limit per unit of average daily attendance for the 1995-96 fiscal year determined pursuant to Section 2550.2. (2) Multiply the amount determined pursuant to paragraph (1) by 0.20. (3) Add the amount determined in paragraph (2) to the revenue limit per unit of average daily attendance determined for the 1995-96 fiscal year. (4) Add the amount determined in paragraph (3) to the inflation adjustment, if any, provided for the 1996-97 fiscal year pursuant to subdivision (d) of Section 2550.5. The amount of the sum is the revenue limit per unit of average daily attendance for the 1996-97 fiscal year for juvenile court schools and county community schools subject to this subdivision. (c) The revenue limit per unit of average daily attendance for the 1997-98 fiscal year for each county superintendent of schools subject to subdivision (b) shall be determined as follows: (1) Increase the amount determined in subdivision (a) by the inflation adjustment for the 1996-97 fiscal year as determined in paragraph (2) of subdivision (a) of Section 2550.2. (2) If the revenue limit per unit of average daily attendance calculated pursuant to paragraph (4) of subdivision (b) is less than the amount determined pursuant to paragraph (1), make the following computation: (A) From the amount calculated pursuant to paragraph (1) subtract the revenue limit per unit of average daily attendance calculated pursuant to paragraph (4) of subdivision (b). (B) Multiply the amount determined in subparagraph (A) by 0.25. (C) Add the amount determined in subparagraph (B) to the revenue limit per unit of average daily attendance calculated pursuant to paragraph (4) of subdivision (b) as increased by the inflation adjustment, if any, provided for the 1997-98 fiscal year pursuant to subdivision (d) of Section 2550.5. The amount of this sum is the revenue limit per unit of average daily attendance for the 1997-98 fiscal year for juvenile court schools and county community schools subject to this subdivision. (d) The revenue limit per unit of average daily attendance for the 1998-99 fiscal year for each county superintendent of schools subject to subdivision (c) shall be determined as follows: (1) Increase the amount determined in paragraph (1) of subdivision (c) by the inflation adjustment for the 1997-98 fiscal year as determined in paragraph (2) of subdivision (a) of Section 2550.2. (2) If the revenue limit per unit of average daily attendance calculated pursuant to subparagraph (C) of paragraph (2) of subdivision (c) is less than the amount determined pursuant to paragraph (1), make the following computation: (A) From the amount calculated pursuant to paragraph (1) subtract the revenue limit per unit of average daily attendance calculated pursuant to subparagraph (C) of paragraph (2) of subdivision (c). (B) Multiply the amount determined in subparagraph (A) by 0.33. (C) Add the amount determined in subparagraph (B) to the revenue limit per unit of average daily attendance calculated pursuant to subparagraph (C) of paragraph (2) of subdivision (c) as increased by the inflation adjustment, if any, provided for the 1998-99 fiscal year pursuant to subdivision (d) of Section 2550.5. The amount of this sum is the revenue limit per unit of average daily attendance for the 1998-99 fiscal year for juvenile court schools and county community schools subject to this subdivision. (e) The revenue limit per unit of average daily attendance for the 1999-2000 fiscal year for each county superintendent of schools subject to subdivision (d) shall be the amount determined as follows: (1) Increase the amount determined in paragraph (1) of subdivision (d) by the inflation adjustment for the 1998-99 fiscal year as determined in paragraph (2) of subdivision (a) of Section 2550.2. (2) If the revenue limit per unit of average daily attendance calculated pursuant to subparagraph (C) of paragraph (2) of subdivision (d) is less than the amount determined pursuant to paragraph (1), make the following computation: (A) From the amount calculated pursuant to paragraph (1) subtract the revenue limit per unit of average daily attendance calculated pursuant to subparagraph (C) of paragraph (2) of subdivision (d). (B) Multiply the amount determined in subparagraph (A) by 0.5. (C) Add the amount determined in subparagraph (B) to the revenue limit per unit of average daily attendance calculated pursuant to subparagraph (C) of paragraph (2) of subdivision (d) as increased by the inflation adjustment, if any, provided for the 1999-2000 fiscal year pursuant to subdivision (d) of Section 2550.5. The amount of this sum is the revenue limit per unit of average daily attendance for the 1999-2000 fiscal year for juvenile court schools and county community schools subject to this subdivision. (f) The revenue limit per unit of average daily attendance for the 2000-01 fiscal year for each county superintendent of schools subject to subdivision (e) shall be the amount determined in subdivision (a) as adjusted for inflation in the 1996-97, 1997-98, 1998-99, 1999-2000, and 2000-01 fiscal years pursuant to paragraph (2) of subdivision (a) of Section 2550.2. (g) In any fiscal year in which Section 2550.1 is operative this section shall be inoperative. SEC. 6. Section 2550.7 of the Education Code is amended to read: 2550.7. The Superintendent of Public Instruction shall apportion funds for each unit of average daily attendance in county community school programs operated by a county superintendent of schools for pupils enrolled therein pursuant to subdivision (a), (b), (c), or (d) of Section 1981 if the county superintendent of schools claims an annual county community school average daily attendance of 20 or less, at the revenue limit per unit of average daily attendance provided for in subdivision (b) of Section 1982. SEC. 7. 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: To make fiscal adjustments necessary for the 2002 Budget Act, it is necessary that this measure take effect immediately as an urgency statute.