BILL NUMBER: SB 1358 INTRODUCED
BILL TEXT
INTRODUCED BY Senators Simitian and Runner
FEBRUARY 21, 2006
An act to amend Section 42238 of, and to add Section 42238.48 to,
the Education Code, relating to school finance, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1358, as introduced, Simitian School finance: revenue limits.
Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county.
Existing law requires the base revenue limit for a fiscal year to be
determined by adding to the base revenue limit for the prior fiscal
year certain amounts.
This bill would require a specified equalization adjustment to be
added for the 2006-07 fiscal year.
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 2006-07 fiscal year, require the
Superintendent of Public Instruction 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.
This bill also would make technical, nonsubstantive changes.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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.
(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 of Public Instruction
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 of
Public Instruction .
(h) The Superintendent of Public Instruction
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. 2. Section 42238.48 is added to the Education Code, to read:
42238.48. (a) (1) For the 2006-07 fiscal year, the Superintendent
shall compute an equalization adjustment for each school district,
so that the 2005-06 base revenue limit per unit average daily
attendance of a school district is not less than the 2005-06 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 2006-07 fiscal year of a school district.
(2) Divide the amount appropriated for purposes of this section
for the 2006-07 fiscal year by the statewide sum of the amount
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 2005-06 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 2005-06 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, under any circumstances,
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 2005-06
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. 3. 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 2006 at the earliest time possible, it is necessary
that this act take effect immediately.