BILL NUMBER: SB 1133	CHAPTERED
	BILL TEXT

	CHAPTER  751
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2006
	PASSED THE SENATE  AUGUST 30, 2006
	PASSED THE ASSEMBLY  AUGUST 30, 2006
	AMENDED IN ASSEMBLY  AUGUST 29, 2006
	AMENDED IN ASSEMBLY  AUGUST 28, 2006
	AMENDED IN ASSEMBLY  AUGUST 24, 2006

INTRODUCED BY   Senator Torlakson
   (Principal coauthor: Assembly Member Mullin)

                        JANUARY 10, 2006

   An act to add Section 41207.1 to, and to add Article 3.7
(commencing with Section 52055.700) to Chapter 6.1 of Part 28 of, the
Education Code, relating to public school finance, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1133, Torlakson  School districts and community college
districts: minimum funding.
   (1) Existing provisions of the California Constitution require the
state to apply a minimum amount of funding for each fiscal year for
the support of school districts and community college districts.
Existing law provides that, for purposes of those minimum funding
requirements for school districts and community college districts,
appropriations for deficiencies and prior year adjustments are deemed
appropriations in the fiscal year in which the deficiencies or prior
year adjustments occurred, unless otherwise provided by law.
   Existing law requires that all determinations of percentages,
amounts, revenues, appropriations, allocations, proceeds of taxes,
increases in cost of living, or enrollments for the purposes of the
minimum state education funding requirement be based upon the best
available estimate until actual data becomes available, and then upon
actual data when it is available.
   This bill would substantially revise the procedure for making the
determinations regarding data to be used to provide the minimum state
educational funding.
   (2) Existing federal law, the No Child Left Behind Act of 2001,
requires a local educational agency to identify for program
improvement any elementary or secondary school that fails, for 2
consecutive years, to make adequate yearly progress, as defined by
the state. Existing federal law requires a school that continues to
fail to make adequate yearly progress after being identified for
program improvement to take additional corrective action or meet
specified restructuring requirements.
   Existing law, the Public Schools Accountability Act of 1999,
establishes the Public School Performance Accountability Program, a
statewide school accountability system that consists of the Academic
Performance Index (API), the Immediate Intervention/Underperforming
Schools Program, and the Governor's High Achieving/Improving Schools
Program. Existing law authorizes the Superintendent of Public
Instruction to require a school district that fails to meet specified
academic growth targets to enter into a contract with a school
assistance and intervention team, as specified.
   This bill would enact the Quality Education Investment Act of
2006, which would authorize school districts and other local
educational agencies to apply to the Superintendent to receive
funding to allocate to elementary and secondary schools and charter
schools that are ranked in either decile 1 or 2 on the 2005 API for
use in performing various specified measures to improve academic
instruction and pupil academic achievement. The bill would impose
various duties on the Superintendent, the Secretary for Education,
and the State Board of Education regarding the review and approval of
applications, the allocation of funds to applicant school districts
and other local educational agencies, and other related matters, as
specified. The bill would require participating schools, as defined,
that receive funding to comply with various interim and program
requirements. The bill would require county superintendents of
schools to annually review participant schools and their data to
determine compliance with the interim and program requirements and to
notify the Superintendent if schools fail to satisfy those
requirements. The bill would provide for the termination of funding
following that notification under certain conditions. The bill would
authorize a school district or other local educational agency that
includes a participating school or schools for which funding is
terminated to appeal that termination. The bill would authorize a
school district or other local educational agency to apply to the
Superintendent for permission to use alternative program requirements
in lieu of those interim and program requirements, as specified. The
bill would provide specified amounts of funding each school year
based on grade level for each enrolled pupil at participating
schools.
   (3) This bill would appropriate $300,000,000 from the General Fund
for purposes of the Quality Education Investment Act of 2006, among
other things, for the 2007-08 fiscal year, to be allocated as
specified. The bill would appropriate $450,000,000 from the General
Fund for purposes of the act, among other things, for each of the
2008 -09 to 2013-14 fiscal years, inclusive, to be allocated as
specified. The bill would provide that those appropriations are for
the purpose of discharging in full the outstanding balance of the
maintenance factor resulting from Chapter 213 of the Statutes of
2004, as specified. The bill would provide that, for purposes of
making the computations required by Section 8 of Article XVI of the
California Constitution, the first $1,620,928,000 of those amounts is
General Fund revenues appropriated for school districts and
community college districts for the 2004-05 fiscal year. The bill
would provide that, for purposes of making those computations, the
remainder of those amounts is General Fund revenues appropriated for
school districts and community college districts for the 2005-06
fiscal year.
   (4) This bill would appropriate the sum of $1,117,000 from the
General Fund to the department to fund 9.0 positions to implement the
Quality Education Investment Act of 2006.
   (5) This bill would require that funds not allocated to public
elementary and secondary schools, charter schools, or community
colleges pursuant to the bill in any fiscal year or funds resulting
from program termination, as specified, in any fiscal year be
available for reappropriation only in furtherance of the purposes of
the bill. The bill would require that first priority for those funds
be given to providing cost-of-living increases and growth-in-pupils
adjustments to participating schools, as defined.
   (6) By imposing additional duties on county superintendents of
schools as part of the Quality Education Investment Act of 2006, this
bill would impose a state-mandated local program.
  (7) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Appropriation: yes.


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


  SECTION 1.  Section 41207.1 is added to the Education Code, to
read:
   41207.1.  (a) Notwithstanding Section 41206, the minimum state
educational funding guarantee for school districts and community
college districts for the 2004-05 fiscal year, as determined pursuant
to Chapter 213 of the Statutes of 2004, is forty-eight billion six
hundred seventy-five million six hundred seventy-four thousand
dollars ($48,675,674,000), creating an outstanding balance of one
billion six hundred twenty million nine hundred twenty-eight thousand
dollars ($1,620,928,000). The outstanding balance shall be
appropriated and allocated pursuant to Article 3.7 (commencing with
Section 52055.700) of Chapter 6.1 of Part 28.
   (b) Notwithstanding Section 41206, the outstanding balance of the
minimum state educational funding requirement for school districts
and community college districts required by subdivision (b) of
Section 8 of Article XVI of the California Constitution in the
2005-06 fiscal year shall be determined using actual data agreed to
by the Superintendent and the Director of Finance no later than
January 31, 2008. The Director of Finance shall provide a written
notification to the Legislature within one month after completion of
the determination, detailing the data of the determination. The
outstanding balance shall be appropriated and allocated pursuant to
Article 3.7 (commencing with Section 52055.700) of Chapter 6.1 of
Part 28.
   (c) When the amount determined to be owed for the 2004-05 and
2005-06 fiscal years pursuant to subdivision (a) or (b) is fully
appropriated and allocated pursuant to Article 3.7 (commencing with
Section 52055.700) of Chapter 6.1 of Part 28, the data used in the
computations made under subdivision (a) and (b) and 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 and Chapter 213 of the Statutes of 2004 for
those fiscal years, including as much of the maintenance factor for
those fiscal years 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 payments made under
this section, shall be deemed certified for purposes of Section
41206.
  SEC. 2.  Article 3.7 (commencing with Section 52055.700) is added
to Chapter 6.1 of Part 28 of the Education Code, to read:

      Article 3.7.  Quality Education Investment Act of 2006

   52055.700.  This article shall be known and may be cited as the
Quality Education Investment Act of 2006.
   52055.710.  It is the intent of the Legislature in enacting this
article to accomplish all of the following:
   (a) Implement the terms of the proposed settlement agreement in
California Teachers Association, et al. v. Arnold Schwarzenegger, et
al. (Case Number 05CS01165 of the Superior Court for the County of
Sacramento).
   (b) Provide for the discharge of the minimum state educational
funding requirement of Section 8 of Article XVI of the California
Constitution and Chapter 213 of the Statutes of 2004 for the 2004-05
and 2005-06 fiscal years.
   (c) Improve the quality of academic instruction and the level of
pupil achievement in schools in which pupils have high levels of
poverty and complex educational needs.
   (d) Develop exemplary school district and school practices that
will create the working conditions and classroom learning
environments that will attract and retain well qualified teachers,
administrators, and other staff.
   (e) Focus school resources, including all categorical funds,
solely on instructional improvement and services to pupils.
   52055.720.  (a) For purposes of this article, the following
definitions apply:
   (1) "Academic Performance Index" or "API" means the Academic
Performance Index established under Section 52052.
   (2) "CBEDS" means the California Basic Educational Data System.
   (3) "Funded school" means a school that is within a school
district or chartering authority, receives funds allocated under this
article, and complies with all applicable interim programs and
alternative requirements described in this article.
   (4) The "High Priority Schools Grant Program" or "HPSGP" means the
High Priority Schools Grant Program established under Article 3.5
(commencing with Section 52055.600).
   (5) "Secretary" means the Secretary for Education.
   (6) "Superintendent" means the Superintendent of Public
Instruction.
   (b) Public schools and charter schools that are ranked in either
decile 1 or 2 on the 2005 Academic Performance Index are eligible to
receive funds under this article.
   (c) A school that is funded under the High Priority Schools Grant
Program, has not met the annual growth target requirements under
Section 52055.650, and is designated as a state sanctioned school is
eligible to be funded under this article if the school undergoes a
rigorous review directed by the Superintendent.
   (d) A school that is funded under the High Priority Schools Grant
Program, and has met or is meeting the requirements of Section
52055.650, is eligible to receive funding under this article and the
HPSGP if the school agrees to meet all accountability requirements of
both programs.
   (e) A school that is funded under this article and continues to
meet the program and achievement requirements of this article shall
be funded annually through the 2013-14 fiscal year.
   (f) The funds appropriated pursuant to this article may be
expended for any purpose identified under the schoolsite's Single
Plan for Pupil Achievement established under Section 64001.
   52055.730.  (a) The Superintendent shall identify and invite
schools districts and chartering authorities that have eligible
schools to participate in the program established under this article.

   (b) The Superintendent shall notify school districts and
chartering authorities at the earliest possible date of all of the
following:
   (1) Schoolsites in the district or of a chartering authority that
are eligible to receive funding pursuant to this article.
   (2) The program and accountability requirements for schools that
receive funding pursuant to this article.
   (3) The deadlines for the submission of documents necessary to
receive funding pursuant to this article.
   (4) Any other information the Superintendent deems necessary to
implement this article.
   (c) The Superintendent shall specify the manner in which school
districts and chartering authorities shall submit applications to
receive funding pursuant to this article. It is the intent of the
Legislature that this submission process be as simple as possible,
use easily available data, and include the requirements of this
article.
   (d) On or before June 30, 2007, the Superintendent, in
consultation with interested parties, shall develop a uniform process
that can be used to calculate average experience for purposes of
reporting, analyzing, or evaluating the distribution of classroom
teaching experience in grades, schoolsites, or subjects across the
district. The uniform process shall include an index that uses the
2005-06 California Basic Educational Data System (CBEDS) Professional
Assignment Information Form (PAIF), including any necessary
corrections, as the base-reporting year to evaluate annual
improvements of the funded schools toward balancing the index of
teaching experience. The index shall be approved by the
Superintendent. The uniform process shall designate teaching
experience beyond 10 years as 10 years.
   (e) The Superintendent shall make applications submitted pursuant
to subdivision (c) available for review by the secretary. The
Superintendent and the secretary shall review the applications and
select the schools for recommendation to the state board within 30
days after the date the application is submitted to the
Superintendent.
   (f) After reviewing applications submitted pursuant to subdivision
(c), the Superintendent and the secretary, jointly, shall submit
their recommendations for schools to be funded to the state board for
approval. The recommendations shall ensure a wide geographic
distribution of funded schools across urban, rural, and suburban
areas of the state. Schools selected should also represent a diverse
distribution of grade levels. If the Superintendent and the secretary
cannot complete the review and recommendation process in the time
provided, the Superintendent shall submit recommendations to the
board.
   (g) To the maximum extent possible the Superintendent, the
secretary, and the state board shall recommend and approve sufficient
schools to use all available funds. A school selected in the first
year shall continue in the program unless it is terminated pursuant
to subdivision (c) of Section 52055.740, it declines to participate,
or there is evidence of fraud or fiscal irregularities.
   (h) In approving the recommendations for funding from the
Superintendent and the secretary, the state board shall also verify
that the funded schools represent the required balance, geographic
distribution, and diverse distribution of grade levels.
   (i) The Superintendent shall perform the duties of a county
superintendent of schools pursuant to this article for funded schools
in those counties in which a single school district operates. The
Superintendent may delegate this responsibility to a county
superintendent of schools in the region in which the single district
county is located.
   (j) The Superintendent and the secretary may select not more than
two county offices of education to provide regional technical
support, document best practices, and provide information regarding
those practices and other support information to schools, school
districts, and chartering authorities. It is the intent of the
Legislature that these activities be merged to the maximum extent
feasible with other state and federally funded activities with
similar requirements.
   52055.740.  (a) For each funded school, the county superintendent
of schools for the county in which the school is located shall
annually review the school and its data to determine if the school
has met all of the following program requirements by the school by
the end of the third full year of funding:
   (1) Meet all of the following class size requirements:
   (A) For kindergarten and grades 1 to 3, inclusive, no more than 20
pupils per class, as set forth in the Class Size Reduction Program
(Chapter 6.10 (commencing with Section 52120)).
   (B) For self-contained classrooms in grades 4 to 8, inclusive, an
average classroom size that is the lesser of clause (i) or (ii), as
follows:
   (i) At least five pupils fewer per classroom than was the average
in 2006-07.
   (ii) An average of 25 pupils per classroom.
   (iii) For purposes of this subparagraph, average classroom size
shall be calculated at the grade level based on the number of
self-contained classrooms in that grade at the schoolsite. If the
self-contained classrooms at the school averaged fewer than 25 pupils
per classroom during the 2005-06 school year, that lower average
shall be used as the "average in 2006-07" for purposes of this
subparagraph. A school that receives funding under this article shall
not have a self-contained classroom in grades 4 to 8, inclusive,
with more than 27 pupils regardless of its average classroom size.
   (C) For classes in English language arts, reading, mathematics,
science, or history and social science courses in grades 4 to 12,
inclusive, an average classroom size that is the lesser of clause (i)
or (ii), as follows:
   (i) At least five pupils fewer per classroom than was the average
in 2006-07.
   (ii) An average of 25 pupils per classroom.
   (iii) For purposes of this subparagraph, average classroom size
shall be calculated at the grade level based on the number of
subject-specific classrooms in that grade at the schoolsite. If the
subject-specific classrooms at the school averaged fewer than 25
pupils per classroom during the 2005-06 school year, that lower
average shall be used as the "average in 2006-07" for purposes of
this subparagraph. A school that receives funding under this article
shall not have a class in English language arts, reading,
mathematics, science, or history and social science in grades 4 to
12, inclusive, with more than 27 pupils regardless of its average
classroom size.
   (D) Not increase any other class sizes in the school above the
size used during the 2005-06 school year. If a funded school has a
low-enrollment innovative class, it may increase the number of pupils
in that class to a number that does not exceed the schoolwide
average.
   (2) In high schools, have a pupil-to-counselor ratio of no more
than 300 to 1. Each counselor shall hold a services credential with a
specialization in pupil personnel services issued by the Commission
on Teacher Credentialing.
   (3) Ensure that each teacher in the school, including intern
teachers, shall be highly qualified in accordance with the federal No
Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.).
   (4) Using the index established under Section 52055.730, have an
average experience of classroom teachers in the school equal to or
exceeding the average for the school district for this type of
school.
   (5) Exceed the API growth target for the school averaged over the
first three full years of funding. Beginning in the fifth year of
participation, funded schools shall meet their annual API growth
targets. If the school fails to meet its annual growth target, the
school shall continue to receive funding pursuant to this article,
but shall be subject to state review, assistance, and timeline
requirements pursuant to the HPSGP under Section 52055.650. The
schoolsite administrator shall not automatically be reassigned based
solely on that failure.
   (b) For each funded school, the county superintendent of schools
for the county in which the school is located shall annually review
the school and its data to determine if the school has met all of the
following interim requirements:
   (1) Be at least one-third of the way toward meeting each of the
program requirements specified in paragraphs (1) to (5), inclusive,
of subdivision (a) by the end of the first full year of funding.
   (2) Be at least two-thirds of the way toward meeting each of the
program requirements specified in paragraphs (1) to (5), inclusive,
of subdivision (a) by the end of the second full year of funding, and
achieve full implementation by the end of the third full year and
for each year thereafter.
   (3) Have provided professional development to at least one-third
of teachers and instructional paraprofessionals in the school
annually.
   (4) Meet all of the requirements of the settlement agreement in
Williams v. State of California (Case Number CGC-00-312236 of the
Superior Court for the County of San Francisco), including, among
other things, the requirements regarding teachers, instructional
materials, and school facilities, by the end of the first full year
of funding, and in each year of funding thereafter.
   (c) (1) If a county superintendent of schools determines that a
funded school has not substantially met the requirements of
subdivision (b) after the first or second full year of funding, or
any alternative program requirements approved under Section
52055.760, he or she shall notify the Superintendent. If all of the
interim and final requirements are not met by the end of any
subsequent school year, the Superintendent shall terminate funding
for that school.
   (2) If the Superintendent terminates funding under this
subdivision, the Superintendent shall provide advance notice to the
district that is sufficient to allow the district a reasonable amount
of time to make staff and other cost adjustments necessitated by the
termination. The Superintendent shall provide the district with
funds sufficient to cover the staff and other cost adjustments.
   (d) A school district or chartering authority that includes a
participating school or schools for which funding is terminated
pursuant to subdivision (c) may appeal that action to the state
board. The state board shall order the reinstatement of funding if,
on appeal, the school district or chartering authority demonstrates
that the data upon which the county superintendent of schools relied
is in error and that the school in question can fully demonstrate its
compliance with the applicable requirements.
   52055.750.  (a) A school district or chartering authority that
receives funding pursuant to this article shall agree to do all of
the following for each funded school within its jurisdiction:
   (1) Comply with the program requirements of this article and
require that each funded schoolsite complete and meet the criteria of
an academic review process that includes the elements of the school
assistance and intervention team review process described in Section
52055.51.
   (2) Ensure that funded schools meet the requirements of this
article.
   (3) Ensure that each school administrator in a funded school is
confirmed to have exemplary qualifications and experience by the end
of the first full year of funding and in each year of funding
thereafter. Those qualifications shall include the ability to support
the success of all pupils by facilitating the development,
articulation, implementation, and stewardship of a vision of learning
that is shared and supported by the school community as well as the
ability to advocate, nurture, and sustain a school culture and
instructional program that is conducive to pupils learning and staff
professional growth. The school district or chartering authority
shall provide for high quality professional development for each
administrator through leadership training, coaching, and mentoring
and shall take all reasonable steps to maintain stable school
leadership in schools that receive funding pursuant to this article.
To the extent appropriate the professional development shall be
similar in quality and rigor to that provided pursuant to the
Administrator Training Program under Article 4.6 (commencing with
Section 44510) of Chapter 3 of Part 25.
   (4) Provide all fiscal and evaluation data requested by the
Superintendent for initial approval, annual reviews, and reports.
   (5) Comply with subdivisions (a) to (c), inclusive, of Section
52055.630, and in the same manner consult with the exclusive
representative of classified employees.
   (6) Assist eligible schools in developing and carrying out a plan
to implement the provisions of this article to ensure the district's
plan supports the work of the school.
   (7) Agree to focus on conditions that improve instruction and
achievement in funded schools.
   (8) Express its full understanding that not meeting annual and
final program and academic achievement requirements under this
article will result in the termination of funding.
   (9) Ensure that the funds received on behalf of funded schools are
expended on that school, except that during the first partial year
of funding districts may use funding under this article for
facilities necessary to meet the class size reduction requirements of
this article, if all funds are spent on funded schools within the
district.
   (10) Use the uniform process recommended by the Superintendent
pursuant to subdivision (d) of Section 52055.730 to ensure that the
average teaching experience of the classroom teachers in funded
schools is equal to or greater than the average teaching experience
of classroom teachers in the school district as a whole.
   (b) If not expressly prohibited by federal law, a school district
or chartering authority on behalf of a funded school is exempt from
requirements imposed on the use of state categorical or federal funds
in the consolidated application, except those funds related to
economic impact aid, if those funds are identified in the revised
plan of Section 52055.755. Funded schools are exempt from all program
requirements associated with funds in the consolidated application,
except requirements regarding parent advisory committees, schoolsite
councils, and special education.  Funds provided under the economic
aid program shall not be used to implement this program.
   (c) Each funded school shall ensure that each teacher in a
subject-specific classroom or teaching covered subjects participates
in professional development that is made available by the district or
the schoolsite councils, is developed in a collaborative process
with interested parties, and is articulated in an improvement plan.
For purposes of this article, professional development activities may
include collaboration time for teachers to develop new instructional
lessons or analyze pupil data, mentoring projects for new teachers,
or extra support for teachers to improve practice. At a minimum,
appropriate professional development for the site shall be part of a
coherent plan that combines school activities within the school,
including, but not limited to, lesson study or coteaching, and
external learning opportunities that meet all of the following
criteria:
   (1) Are related to the academic subjects taught.
   (2) Provide time to meet and work with other teachers.
   (3) Support instruction and pupil learning to improve instruction
in a manner that is consistent with academic content standards.
   (4) Include an average of 40 hours per teacher per year.
   (d) At a minimum, professional development in a self-contained
classroom shall include content regarding mathematics, science,
English language arts, reading, and English language development.
Professional development for teachers teaching subject specific
courses shall include the specific subject and English language
development. To the extent appropriate the professional development
shall be similar in quality and rigor to the training provided under
the Mathematics and Reading Professional Development Program in
Article 3 (commencing with Section 99230) of Chapter 5 of Part 65.
   (e) On or before the end of the first three years of full funding,
funded schools shall do the following:
   (1) Increase actual pupil attendance, as compared with monthly
enrollment in the school.
   (2) For secondary schools, increase graduation rates as described
in Section 52055.640.
   52055.755.  With assistance from the school district or the
chartering authority, or, where appropriate, with regional assistance
provided under subdivision (j) of Section 52055.730, each funded
school shall revise its plan adopted pursuant to Section 64001. The
revised plan shall do all of the following:
   (a) Include funds available pursuant to this article, including,
but not limited to, the categorical funds described in subdivision
(b) of Section 52055.750, unless expressly excluded under that
section.
   (b) Describe the manner in which the requirements of this act will
be met.
   (c) Focus on instructional improvement and improving instructional
conditions.
   52055.760.  (a) A school district or chartering authority may
apply for authority from the Superintendent to use alternative
program requirements if the district or authority demonstrates that
compliance with alternative program requirements would provide a
higher level of academic achievement among pupils than compliance
with the interim and program requirements of this article.
   (b) Alternative program requirements may be used to serve no more
than 15 percent of the pupils funded pursuant to this article.
Alternative programs shall serve the entire school.
   (c) A school district or chartering authority may use alternative
program requirements at a funded school if all the following criteria
are satisfied:
   (1) The proposed alternative requirements are based on reliable
data and are consistent with sound scientifically based research
consistent with subdivision (j) of Section 44757.5 on effective
practices.
   (2) The costs of complying with the proposed alternative
requirements do not exceed the amount of funding received by the
school district or chartering authority pursuant to this article.
   (3) Funded schools agree to comply with the alternative program
requirements and be subject to the termination procedures specified
in subdivision (c) of Section 52055.740. Funded schools with
alternative programs shall also be required to exceed the API growth
target for the school averaged over the first three fully funded
years and annually thereafter.
   (4) The Superintendent and the secretary have jointly reviewed the
proposed alternative funded schools of the school district or
chartering authority for purposes of this section and have
recommended to the state board for its approval those schools, using
the same process as for the regular program recommendations.
   (d) The Superintendent shall give priority for approval of schools
with alternative programs to any school serving any of grades 9 to
12, inclusive, that has demonstrated to the satisfaction of the
Superintendent and the secretary that the school cannot decrease
class sizes as required under this article due to extraordinary
issues relating to facilities, or due to the adverse impact of the
requirements of this program, if implemented in the school, on the
eligibility of the school district for state school facility funding.

   52055.765.  (a) The department shall perform, or contract with an
independent evaluator to perform, all of the following:
   (1) Compose a progress report on or before January 1, 2010, and a
second progress report on or before January 1, 2012, on the
implementation of the program authorized under this article.
   (2) On or before January 1, 2014, conduct a final evaluation of
the implementation of the program authorized under this article.
   (3) Provide a report to the Legislature and the Governor regarding
the final evaluation completed under paragraph (2) and, in that
report, make recommendations to continue, modify, or terminate the
program by January 1, 2014, based upon the results in meeting the
measurements described in subdivision (b).
   (b) The evaluation of the effectiveness of the program shall be
based on effectiveness of strategies used by schools to implement the
program and meet its accountability requirements pursuant to this
article.
   (c) The reports shall include pupil achievement data,
disaggregated by subgroups, as required by the Academic Performance
Index.
   (d) The department may use resources provided pursuant to
subdivision (j) of Section 52055.770, or funds allocated in the
annual Budget Act, for the purposes of carrying out the requirements
of this section.
                                     52055.770.  (a) School districts
and chartering authorities shall receive funding at the following
rate, on behalf of funded schools:
   (1) For kindergarten and grades 1 to 3, inclusive, five hundred
dollars ($500) per enrolled pupil in funded schools.
   (2) For grades 4 to 8, inclusive, nine hundred dollars ($900) per
enrolled pupil in funded schools.
   (3) For grades 9 to 12, inclusive, one thousand dollars ($1,000)
per enrolled pupil in funded schools.
   (b) For purposes of subdivision (a), enrollment of a pupil in a
funded school in the prior fiscal year shall be based on data from
the CBEDS. For the 2007-08 fiscal year, the funded rates shall be
reduced to reflect the percentage difference in the total amounts
appropriated for purposes of this section in that year compared to
the amounts appropriated for purposes of this section in the 2008-09
fiscal year.
   (c) The following amounts are hereby appropriated from the General
Fund for the purposes set forth in subdivision (f):
   (1) For the 2007-08 fiscal year, three hundred million dollars
($300,000,000), to be allocated as follows:
   (A) Thirty-two million dollars ($32,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the Community Colleges to community colleges for
the purpose of providing funding to the community colleges to improve
and expand career technical education in public secondary education
and lower division public higher education pursuant to Section 88532,
including the hiring of additional faculty to expand the number of
career technical education programs and course offerings.
   (B) Two hundred sixty-eight million dollars ($268,000,000) for
transfer by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (2) For each of the 2008-09 to 2013-14 fiscal years, inclusive,
four hundred fifty million dollars ($450,000,000) per fiscal year, to
be allocated as follows:
   (A) Forty-eight million dollars ($48,000,000) for transfer by the
Controller to Section B of the State School Fund for allocation by
the Chancellor of the Community Colleges to community colleges as
required under subdivision (e).
   (B) Four hundred two million dollars ($402,000,000) for transfer
by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (d) For the 2013-14 fiscal year the amounts appropriated under
subdivision (c) shall be adjusted to reflect the total fiscal
settlement agreed to by the parties in California Teachers
Association, et al. v. Arnold Schwarzenegger (Case Number 05CS01165
of the Superior Court for the County of Sacramento) and the sum of
all fiscal years of funding provided to fund this article shall not
exceed the total funds agreed to by those parties. This annual
appropriation shall continue to be made until the Director of Finance
reports to the Legislature, along with all proposed adjustments to
the Governor's Budget pursuant to Section 13308 of the Government
Code, that the sum of appropriations made and allocated pursuant to
subdivision (c) equals the total outstanding balance of the minimum
state educational funding obligation to school districts and
community college districts required by Section 8 of Article XVI of
the California Constitution and Chapter 213 of the Statutes of 2004
for the 2004-05 and 2005-06 fiscal years, as determined in
subdivision (a) or (b) of Section 41207.1.
   (e) The sum transferred under subparagraph (A) of paragraph (2) of
subdivision (c) shall be allocated by the Chancellor of the
Community Colleges as follows:
   (1) Thirty-eight million dollars ($38,000,000) to the community
colleges for the purpose of providing funding to the community
colleges to improve and expand career technical education in public
secondary education and lower division public higher education
pursuant to Section 88532, including the hiring of additional faculty
to expand the number of career technical education programs and
course offerings.
   (2) Ten million dollars ($10,000,000) to the community colleges
for the purpose of providing one-time block grants to community
college districts to be used for one-time items of expenditure,
including, but not limited to, the following purposes:
   (A) Physical plant, scheduled maintenance, deferred maintenance,
and special repairs.
   (B) Instructional materials and support.
   (C) Instructional equipment, including equipment related to
career-technical education, with priority for nursing program
equipment.
   (D) Library materials.
   (E) Technology infrastructure.
   (F) Hazardous substances abatement, cleanup, and repair.
   (G) Architectural barrier removal.
   (H) State-mandated local programs.
   (3) The Chancellor of the California Community Colleges shall
allocate the amount allocated pursuant to paragraph (2) to community
college districts on an equal amount per actual full-time equivalent
student (FTES) reported for the prior fiscal year, except that each
community college district shall be allocated an amount not less than
fifty thousand dollars ($50,000), and the equal amount per unit of
FTES shall be computed accordingly.
   (4) Funds allocated under paragraph (2) shall supplement and not
supplant existing expenditures and may not be counted as the district
contribution for physical plant projects and instructional material
purchases funded in Item 6870-101-0001 of Section 2.00 of the annual
Budget Act.
   (f) The appropriations made under subdivision (c) are for the
purpose of discharging in full the minimum state educational funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution
and Chapter 213 of the Statutes of 2004 for the 2004-05 fiscal year,
and the outstanding maintenance factor for the 2005-06 fiscal year
resulting from this additional payment of the Chapter 213 amount for
the 2004-05 fiscal year.
   (g) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, including
computation of the state's minimum funding obligation to school
districts and community college districts in subsequent fiscal years,
the first one billion six hundred twenty million nine hundred
twenty-eight thousand dollars ($1,620,928,000) in appropriations made
pursuant to subdivision (c) shall be deemed to be "General Fund
revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 and "General Fund Revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for the 2004 -05 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 that fiscal year. The remaining
appropriations made pursuant to subdivision (c) shall be deemed to be
"General Fund revenues appropriated for school districts," as
defined in subdivision (c) of Section 41202 and "General Fund
revenues appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for the 2005-06 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 that fiscal year.
   (h) From funds appropriated under subdivision (c), the
Superintendent shall provide both of the following:
   (1) Not more than two million dollars ($2,000,000) annually to
county superintendents of schools to carry out the requirements of
this article, allocated in a manner similar to that created to carry
out the new duties of those superintendents under the settlement
agreement in the case of Williams v. California (Super. Ct. San
Francisco, No.  CGC-00-312236).
   (2) Five million dollars ($5,000,000) in the 2007-08 fiscal year
to support regional assistance under Section 52055.730. It is the
intent of the Legislature that the Superintendent and the secretary,
along with county offices of education, seek foundational and other
financial support to sustain and expand these services. Funds
provided under this paragraph that are not expended in the 2007-08
fiscal year shall be reappropriated for use in subsequent fiscal
years for the same purpose.
   (i) Notwithstanding any other provision of law, funds appropriated
under subdivision (c) but not allocated to schools with kindergarten
or grades 1 to 12, inclusive, in a fiscal year, due to program
termination in any year or otherwise, shall be available for
reappropriation only in furtherance of the purposes of this article.
First priority for those amounts shall be to provide cost-of-living
increases and enrollment growth adjustments to funded schools.
   (j) The sum of one million one hundred seventeen thousand dollars
($1,117,000) is hereby appropriated from the General Fund to the
State Department of Education to fund 9.0 positions to implement this
article. Funding provided under this subdivision is not part of
funds provided pursuant to subdivision (c).
  SEC. 3.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.