BILL NUMBER: SB 851	CHAPTERED
	BILL TEXT

	CHAPTER  715
	FILED WITH SECRETARY OF STATE  OCTOBER 19, 2010
	APPROVED BY GOVERNOR  OCTOBER 19, 2010
	PASSED THE SENATE  OCTOBER 8, 2010
	PASSED THE ASSEMBLY  OCTOBER 8, 2010
	AMENDED IN ASSEMBLY  OCTOBER 8, 2010

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 11, 2010

   An act relating to education finance, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 851, Committee on Budget and Fiscal Review. 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.


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.