BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 18
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 18 (Brownley)
          As Amended  August 8, 2012
          Majority vote
           
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          |ASSEMBLY:  |     |(June 1, 2011)  |SENATE: |22-15|(August 23,    |
          |           |     |                |        |     |2012)          |
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                    (vote not relevant)
           
           Original Committee Reference:    ED.  

           SUMMARY:   Creates a 21-member California Task Force on School 
          Finance (Task Force) to be appointed, as specified, by the 
          Governor, the Speaker of the Assembly, and the Senate Rules 
          Committee, to review and analyze alternative formulas for 
          allocating funds to public schools and to recommend formulas that 
          best meet the needs of California's public school system and 
          pupils.  Specifically,  the bill  :

          1)Requires the Task Force to consist of currently employed 
            teachers, school administrators, and classified employees; 
            current school board members; parents; representatives of urban, 
            suburban, and rural school districts; representatives of 
            traditionally underserved pupil populations; and, members of the 
            research community with expertise in school finance.

          2)Provides for the Superintendent of Public Instruction (SPI) to 
            serve on and chair the Task Force.

          3)Requires the Task Force to:

             a)   Identify key issues related to the fair, efficient, and 
               equitable distribution of resources among and within local 
               educational agencies;

             b)   Identify means by which a funding formula can maximize 
               local decision making authority while ensuring that statewide 
               policy objectives are met;

             c)   Solicit comments and suggestions from educators and the 
               public;

             d)   Develop alternative funding formulas, as specified;








                                                                  AB 18
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             e)   Simulate the distribution of funds under alternative 
               formulas;

             f)   Identify, for each formula, a target level of funding, as 
               specified, for each local education agency;

             g)   Make recommendations regarding a methodology for 
               transitioning to a new funding formula; and,

             h)   Report its findings and recommendations to the Legislature 
               by April 1, 2013.

          4)Requires funding formulas to be evaluated based on the degree to 
            which they:

             a)   Result in a level of funding for each local education 
               agency that matches its needs as determined by pupil 
               demographics, grade level enrollment, regional cost 
               differences, and other cost factors identified by the Task 
               Force;

             b)   Facilitate the attainment of educational policy 
               objectives;

             c)   Can be modified to reflect changing conditions and policy 
               objectives; and,

             d)   Can be easily understood and administered by policymakers 
               and the public.

          5)Provides that members of the Task Force shall serve without 
            compensation, but may be reimbursed direct travel and meal 
            expenses.
          6)Requires the meetings of the Task Force to be subject to the 
            Bagley-Keene Act.

          7)Provides that this bill shall become operative only if the SPI 
            certifies that sufficient nonstate funds are available for its 
            implementation.

          8)Establishes a sunset date of July 1, 2013, and a repeal date of 
            January 1, 2014.

           The Senate amendments  delete the Assembly version of the bill and 
          add the provisions described above.








                                                                  AB 18
                                                                  Page  3

           AS PASSED BY THE ASSEMBLY,  this bill consolidated funding for most 
          K-12 categorical programs into three block grants.

           FISCAL EFFECT:   According to the Senate Appropriations Committee:

          1)Approximately $250,000 from nonstate funds for expenses of the 
            Task Force.

          2)Unknown fiscal impact to implement any recommended funding 
            formula and related recommendations developed by the Task Force.

           COMMENTS:   In January 2014, Governor Brown proposed a Weighted 
          Pupil Funding (WPF) formula as part of his 2012-13 budget 
          proposal.  The January proposal was updated in the May Revision of 
          the budget.  The purpose of the proposal was to reform a school 
          finance system that is widely viewed as being too complex and 
          confusing and as failing to deliver resources to where they are 
          needed most based on pupil needs.  The Assembly version of this 
          bill offered an alternative approach to school finance reform by 
          consolidating funding for most categorical programs into three 
          block grants.

          The Governor never put his proposal in bill form for consideration 
          by legislative policy committees, and a scheduled joint hearing of 
          the Assembly Education Committee and the Senate Education 
          Committee was cancelled at the Administration's request.  The 
          purpose of this bill, according to the author, is bring all 
          interested parties to the table in order to achieve the consensus 
          needed to pass school finance reform legislation.  According to 
          the author, "AB 18 is  not  another study bill.  Rather, the purpose 
          of AB 18 is to build upon the studies and research that have 
          already taken place, and to bring the conversation about school 
          finance reform to a conclusion, rather than prolong it."

           Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087  FN: 
          0005120