BILL NUMBER: SB 851	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  OCTOBER 8, 2010

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 11, 2010

    An act relating to the Budget Act of 2010.  
An act relating to education finance, and declaring the urg 
 ency thereof, to take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 851, as amended, Committee on Budget and Fiscal Review.
 Budget Act of 2010.   Education finance:
Proposition 98: suspension.  
   The California Constitution requires 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 authorizes
the Legislature to suspend that minimum funding obligation for one
year by the enactment of an urgency statute, as provided.  
   This bill would suspend the minimum funding obligation for the
2010-11 fiscal year and would declare that the amount of money that
will be applied by the state for the support of school districts and
community college districts during the 2010-11 fiscal year is
$49,658,220,000, which would include the amount of the outstanding
maintenance factor required to be allocated in the 2010-11 fiscal
year.  
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2010. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION 1.    (a) The Legislature finds and declares
that the minimum funding obligation for school districts and
community college districts pursuant to subdivision (b) of Section 8
of Article XVI of the California Constitution for the 2010-11 fiscal
year, as derived from application of the requirements of Section 8 of
Article XVI of the California Constitution to the minimum funding
obligation for the 2008-09 fiscal year, as certified pursuant to
Section 41207.2 of the Education Code, including allocation of
maintenance factor owed in the 2009-10 and 2010-11 fiscal years,
exceeds the state's revenues available for this purpose for the
2010-11 fiscal year.  
   (b) The Legislature hereby invokes subdivision (h) of Section 8 of
Article XVI of the California Constitution to suspend the minimum
funding obligation for school districts and community college
districts for the 2010-11 fiscal year.  
   (c) In lieu of the constitutional minimum funding obligation, the
amount that will be applied by the state for the support of school
districts and community college districts for the 2010-11 fiscal year
is forty-nine billion six hundred fifty-eight million two hundred
twenty thousand dollars ($49,658,220,000), which includes the amount
of the outstanding maintenance factor allocated in the 2010-11 fiscal
year.  
   (d) The amount of the maintenance factor created in the 2010-11
fiscal year as a result of this section shall be calculated pursuant
to subdivision (d) of Section 8 of Article XVI of the California
Constitution and shall be added to the adjusted maintenance factor
outstanding as of the end of the 2009-10 fiscal year, from which
shall be subtracted the amount of maintenance factor allocated in the
2010-11 fiscal year as set forth in subdivision (c).  
   (e) The minimum funding obligation set forth in subdivision (c)
for the support of school districts and community college districts
for the 2010-11 fiscal year may not be decreased except pursuant to a
subsequent invocation of subdivision (h) of Section 8 of Article XVI
of the California Constitution enacted during the 2010-11 fiscal
year.  
   (f) Subdivision (b) does not apply to subparagraph (B) of
paragraph (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution. 
   SEC. 2.    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 2010 at the earliest possible time, it is necessary
that this act take effect immediately.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2010.