BILL ANALYSIS Ó AB 18 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 18 (Brownley) As Amended August 8, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: | |(June 1, 2011) |SENATE: |22-15|(August 23, | | | | | | |2012) | ----------------------------------------------------------------- (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 Page 2 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