BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 18| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 18 Author: Brownley (D), et al. Amended: 8/8/12 in Senate Vote: 21 SENATE EDUCATION COMMITTEE : 6-2, 6/27/12 AYES: Lowenthal, Alquist, Liu, Price, Simitian, Vargas NOES: Blakeslee, Huff NO VOTE RECORDED: Runner, Hancock, Vacancy SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/16/12 AYES: Kehoe, Alquist, Lieu, Price, Steinberg NOES: Walters, Dutton ASSEMBLY FLOOR : 74-2, 6/1/11 - See last page for vote SUBJECT : Education finance: California Task Force on School Finance SOURCE : Superintendent of Public Instruction, Tom Torlakson DIGEST : This bill (1) establishes a 21-member California Task Force on School Finance (Task Force) as of January 1, 2013, to review and analyze alternative formulas for allocating funds to public schools in California for the purpose of identifying and recommending a formula or formulas that best meet the needs of California's public school system and public school pupils. This bill specifies criteria to be used by the Task Force to evaluate CONTINUED AB 18 Page 2 funding formulas. This bill provides that 10 of the members of the Task Force will be appointed by the Governor, five appointed by the Speaker of the Assembly, five appointed by the Senate Rules Committee, and that the Superintendent of Public Instruction (SPI) or his/her designee will be a member of, and serve as chair of, the Task Force; (2) specifies the qualifications of the appointees, and provides for reimbursement for their expenses in attending meetings;(3) requires that meetings of the Task Force will be subject to specified open meetings requirement; (4) requires the Task Force to report its findings and recommendations to the Legislature on or before April 1, 2013; (5) becomes operative only if the SPI certifies, on or before January 31, 2013, that sufficient nonstate funds are available for its implementation; and (6) makes these provisions inoperative on July 1, 2013, and repeals them as of January 1, 2014. ANALYSIS : Existing law: 1. Establishes the public school system in this state, and, among other things, provides for the establishment of school districts throughout the state and for their provision of instruction at the public elementary and secondary schools they operate and maintain. 2. Establishes a public school funding system that includes, among other elements, the provision of funding to local educational agencies through state apportionments, the proceeds of property taxes collected at the local level, and other sources. This bill: 1. Establishes a 21-member Task Force as of January 1, 2013, to review and analyze alternative formulas for allocating funds to public schools in California for the purpose of identifying and recommending a formula or formulas that best meet the needs of California's public school system and public school pupils. 2. Specifies criteria to be used by the Task Force to CONTINUED AB 18 Page 3 evaluate funding formulas. 3. Provides that ten of the members of the Task Force will be appointed by the Governor, five appointed by the Speaker of the Assembly, five appointed by the Senate Rules Committee, and that the Superintendent of Public Instruction or his/her designee will be a member of, and serve as chair of, the Task Force. 4. Specifies the qualifications of the appointees, and provides for reimbursement for their expenses in attending meeting, and requires that meetings of the Task Force will be subject to specified open meetings requirement. 5. Requires the Task Force to report its findings and recommendations to the Legislature on or before April 1, 2013. 6. Makes these provisions inoperative on July 1, 2013. 7. Repeals them as of January 1, 2014. Comments According to the author's office, there is growing consensus that the current system of allocating funds to school districts is too complex and confusing, does a poor job of matching resources to district needs, and restricts the ability of local district officials to make budgetary decisions that are in the best interests of their students. This bill addresses these issues by putting most categorical programs into one of four block grants. The block grant approach simplified funding and gave districts more flexibility over the use of categorical funds (i.e., extending much of the flexibility that is scheduled to expire after 2013-14). It also provided a basis for growing into a more equitable distribution of funds, based on student demographics, over time. In January, Governor Brown proposed a Weighted Pupil Funding (WPF) formula as part of his budget proposal. That CONTINUED AB 18 Page 4 proposal would have collapsed nearly all categorical program funding, along with revenue limit funding, into a single formula containing a base amount of funding per pupil, plus an additional "weighted" amount for English learners and pupils from low income families. That proposal, which was never put into bill form for consideration by policy committees, raised a number of policy questions regarding the proper amount for the base grant and weights, which categorical programs (if any) should be excluded from the formula, what restrictions (if any) should be placed on the use of funds, the role of accountability, etc. Because the proposal was not submitted to the Legislature as a bill, there was never a formal opportunity for legislators and other interested parties to publicly consider these issues. This bill, as amended, establishes a process to do that as well as to consider alternative approaches to reforming school finance. The intent of this bill is to provide an opportunity for each house of the Legislature, the Governor, the SPI and the public to engage in conversations, consider options, and make recommendations in time to inform legislation for possible introduction in 2013. This bill provides broader perspective, balance, insight, and public input. This bill "provides state policymakers with a comprehensive plan to reform the current education finance system, to leverage and support pupil achievement by making California's funding system simpler, more transparent, and more effective. This bill intends to bridge the gap between the academic conclusions of the Getting Down to Facts studies and specific legislative proposals. Historical discussions concerning the transition from one funding scheme to another have generally focused on making the change in one step, while sorting out those winners that gain funding and those losers that receive less funding. Major studies in the recent past have addressed the need for school finance reform but the current fiscal environment makes it virtually impossible to undertake any major restructuring. Major revisions undertaken with no additional funds, require that some districts lose funding if others gain. Since studies agree that all school districts are under financed -- in order CONTINUED AB 18 Page 5 for our state's pupil population to reach an academic threshold of 800 as measured by the state's academic performance index - it make sense to take funds for one inadequately funded school(s) funding system in order to try to improve or move to another. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/16/12) Superintendent of Public Instruction, Tom Torlakson (source) California Association of School Business Officials California Council for Adult Education California State PTA California Teachers Association Public Advocates ASSEMBLY FLOOR : 74-2, 6/1/11 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, Portantino, Silva, Smyth, Solorio, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NOES: Mendoza, Swanson NO VOTE RECORDED: Buchanan, Gorell, V. Manuel Pérez, Skinner PQ:d 8/20/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE CONTINUED AB 18 Page 6 **** END **** CONTINUED