BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 698 (Negrete McLeod) Hearing Date: 05/11/2009 Amended: 04/02/2009 Consultant: Dan Troy Policy Vote: ED 8-1 _________________________________________________________________ ____ BILL SUMMARY: SB 698 would exempt funding for juvenile court school apportionments from the deficit factors established for the 2008-09 and 2009-10 fiscal years and would replace average daily attendance (ADA) with average daily enrollment (ADE) as the basis for funding. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2008-09 2009-10 2010-11 Fund JCS deficit restoration $12,400 $21,900 General* Average daily enrollment $7,500 $15,000 $15,000 General* *Counts toward meeting the Proposition 98 minimum funding guarantee _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Juvenile court schools are public schools operated by county offices of education in juvenile halls, juvenile ranches and camps, and regional youth educational facilities. Average funding for the program would be just over $10,000 per unit of average daily attendance for the 2008-09 fiscal year, though a deficit factor included as part of the budget process has reduced that figure. The deficit factors established for the 2008-09 and 2009-10 fiscal years are 7.819% and 13.360%, respectively. Over the two fiscal years, the Department of Education estimates the costs to total approximately $35 million. Additionally, switching the unit of funding from ADA to ADE would result in significant state costs, as under ADA, absences are not funded while they would be under ADE. Total annual headcounts are typically in the range of 30,000 while ADA for the 2008-09 fiscal year is estimated to be approximately 15,700. The 30,000 figure is not a good estimate of average daily enrollment, though, as many pupils cycle in and out of JCS during the course of the year, often staying in the program for less than 90 days. Assuming an average daily absence rate for JCS is approximately 10 percent, a switch from ADA to ADE would cost approximately $15 million per year, though this figure would be lower to the extent program funding is deficited.