BILL ANALYSIS
AB 8
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Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 8 (Brownley) - As Amended: March 26, 2009
Policy Committee: Education
Vote:11-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Director of Finance and the Legislative
Analyst to convene a working group to make findings and
recommendations to the Legislature and the Governor regarding
the implementation of a restructured California school finance
system, as specified. This measure further requires the working
group to present its findings and recommendations on or before
December 1, 2010. Specifically, this bill:
1)Requires the working group to consist of representatives of
the Governor, Superintendent of Public Instruction (SPI), and
majority and minority staff of the appropriate policy and
fiscal committees of the Assembly and Senate.
2)Requires the working group to make findings and
recommendations regarding the following:
a) Alternative structures for funding public schools,
including, but not limited to, stability of funding,
reporting of financial data, and allocation of consistent
additional resources to local education agencies (LEAs).
b) Means of transitioning the current funding structure to
the new structure, as specified. The bill further
discusses the conditions that should be in place before a
transition begins, including the extent to which LEAs will
be held harmless in funding and an equalization component
for the transition of new funding.
c) Costs associated with implementing new school funding
structures, as specified.
AB 8
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d) Evaluation mechanisms to facilitate continuous
improvement, maximum transparency, and accountability.
FISCAL EFFECT
1)One-time GF costs, likely less than $100,000, to the
Department of Finance and Legislative Analyst Office to
convene a working group, as specified.
2)To the extent that this bill leads to the establishment of a
transition funding mechanism and increased funding for K-12
pupils, there will be significant GF/98 cost pressure likely
in excess of $5 billion.
COMMENTS
1)Purpose . In March 2007, the Institute for Research on
Education Policy & Practice released Getting Down to Facts:
School Finance and Governance in California (Loeb, Bryk, and
Hanushek), a research project intended to provide policymakers
and the public with comprehensive information about the status
of the state's school finance and governance systems. Getting
Down to Facts consists of several research reports addressing
issues of school finance, governance, charter schools, and
special populations of pupils (English language learners
(ELLs), special education, etc.). In the area of school
finance, the reports argue that the current funding formula
for K-12 education is not meeting student outcome goals,
especially for students in poverty. Likewise, the reports
conclude that more money in the current finance system is
unlikely to dramatically improve student achievement, unless
accompanied by significant policy reforms.
2)The Governor's Committee on Education Excellence , established
in April 2005, is a non-partisan, privately funded group
charged with examining K-12 education in California and
recommending steps to improve the performance of public
schools. The 15-member committee focused on four interrelated
issues: the distribution and adequacy of education funding;
the functioning and effectiveness of governance structures;
teacher recruitment and training; and the preparation and
retention of school administrators.
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The committee and independent studies in support of its work
are funded through a public-private partnership from private
foundations, such as the William and Flora Hewlett Foundation,
the James Irvine Foundation, the Stuart Foundation, and the
Bill & Melinda Gates Foundation.
In April 2008, the committee released its report entitled
Students First: Renewing Hope for California's Future. The
report provides a blue-print and specific proposals on how to
reform the state's educational system, including funding
formulas.
3)Related legislation .
a) AB 60 (Coto), pending in this committee, requires the
SPI to enter into an agreement for the completion of a
comprehensive study of key factors to be considered in the
creation of weights within a weighted student funding
formula for California.
b) AB 2159 (Brownley) established a Funding and
Accountability Commission for Transparency and Simplicity
(FACTS) to provide policymakers with a comprehensive plan
to reform the education finance system, as specified. This
bill was held in the Senate Rules Committee in August 2008.
c) AB 60 (Coto), held on this committee's suspense file in
April 2008, required the SPI to enter into an agreement for
a comprehensive study of key factors to be considered in
the creation of variables within the concept of a weighted
formula for funding pupil learning.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081