BILL ANALYSIS                                                                                                                                                                                                    Ó





                                                                  AB 18

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          GOVERNOR'S VETO
          AB 18 (Brownley)
          As Amended  August 8, 2012
          2/3 vote
           
           
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          |ASSEMBLY:  |     |(June 1, 2011)  |SENATE: |22-15|(August 23,    |
          |           |     |                |        |     |2012)          |
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                    (vote not relevant)
           
           
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          |ASSEMBLY:  |54-26|(August 27,     |        |     |               |
          |           |     |2012)           |        |     |               |
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          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 










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               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;

             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.










                                                                  AB 18

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          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.

           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.










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          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."

           GOVERNOR'S VETO MESSAGE  :

          "This bill would establish a 21-member California Task Force on 
          School Finance to review and analyze alternative formulas for 
          allocating funds to public schools.

          "I agree that California's complex school finance laws need 
          urgent attention. Creating a task force, however, may actually 
          delay action on reforms. 

          "Rather than create a task force, let's work together and craft 
          a fair Weighted Student Formula."
           

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

                    
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