BILL NUMBER: SB 81 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 30, 2012
AMENDED IN ASSEMBLY JANUARY 19, 2012
AMENDED IN ASSEMBLY MARCH 14, 2011
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 10, 2011
An act to amend Section 46201.3 of, and to
add Section 46201.4 to, Sections 2558.46 and
42238.146 of the Education Code , and to amend Section 57
of Chapter 7 of the Statutes of 2011 , relating to education
finance, and making an appropriation therefor, to take effect
immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 81, as amended, Committee on Budget and Fiscal Review. Budget
Act of 2011.
(1) Existing law establishes an education funding system under
which the Superintendent of Public Instruction apportions to each
qualifying school district, county office of education, and charter
school, state aid funds in an amount not to exceed the revenue limit,
an amount that is largely based on average daily attendance, which
is computed as specified. Existing law also requires, for the 2011-12
school year, that the revenue limit for each school district, county
office of education, and charter school be reduced pursuant to a
specified formula.
This bill would require, for the 2011-12 school year, that the
revenue limit for each school district, county office of education,
and charter school be reduced by an additional 0.65%. The bill would
also require that the computation of the revenue limit for each
school district, county office of education, and charter school for
the 2012-13 fiscal year be determined based on the revenue limit for
the 2011-12 fiscal year, not including the 0.65% reduction.
(1) Under existing law, the amount of revenue that a district may
collect annually for general purposes, called a revenue limit, is
calculated in accordance with various statutory formulas. A basic aid
school district is a school district where property tax revenues
exceed the revenue limit and the district consequently does not
receive a state apportionment. Existing law also expresses
legislative intent that basic aid school districts assume categorical
funding reductions proportionate to the revenue limit reductions
implemented for nonbasic aid school districts in the 2008-09 and
2009-10 fiscal years. Existing law requires calculations to implement
the funding reductions, including, in specified circumstances,
subtracting an amount determined by multiplying each district's
2011-12 fiscal year total revenue limit, subject to a specified
deficit factor and calculated as specified, by 8.92%.
This bill would instead require each district's 2011-12 fiscal
year total revenue limit to be multiplied by 9.57%.
(2) Existing law requires a revenue limit to be calculated for
each county superintendent of schools, adjusted for various factors,
and reduced, as specified. Existing law reduces the revenue limit for
each county superintendent of schools for the 2011-12 fiscal year by
a deficit factor of 20.041%.
This bill would instead set the deficit factor for each county
superintendent of schools for the 2011-12 fiscal year at 20.691%.
(3) Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county and
requires the amount of the revenue limit to be adjusted for various
factors. Existing law reduces the revenue limit for each school
district for the 2011-12 fiscal year by a deficit factor of 19.754%.
This bill would instead set the deficit factor for each school
district for the 2011-12 fiscal year at 20.404%.
(2)
(4) Existing law authorized the Director of Finance to
make reductions to certain appropriations in the Budget Act of 2011
if the higher of 2 specified revenue forecasts for the 2011-12 fiscal
year was less one or both of 2 specified sums. Pursuant to this
provision, the Director of Finance is required to reduce the
appropriation for home-to-school transportation and small school
district transportation that was included in the Budget Act of
2011 by up to $248,000,000.
This bill would make an appropriation of $248,000,000 from the
General Fund to the State Department of Education, for transfer to
Section A of the State School Fund, to restore any funding for
home-to-school transportation and small school district
transportation for the 2011-12 fiscal year reduced pursuant to
this authority.
(3)
(5) This bill would declare that it is to take effect
immediately as a bill providing for appropriations related to the
Budget Bill.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 46201.3 of the Education
Code is amended to read:
46201.3. (a) For the 2011-12 school year, the minimum number of
instructional days and minutes school districts, county offices of
education, and charter schools are required to offer as set forth in
Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and 47612.5
shall be reduced by up to seven days.
(b) Implementation of the reduction in the number of instructional
days offered by a school district, county office of education, and
charter school that is subject to collective bargaining pursuant to
Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1
of the Government Code shall be achieved through the bargaining
process, provided that the agreement has been completed and
reductions implemented no later than June 30, 2012.
(c) The revenue limit for each school district, county office of
education, and charter school determined pursuant to Article 3
(commencing with Section 2550) of Chapter 12 of Part 2 of Division 1
of Title 1, Article 2 (commencing with Section 42238) of Chapter 7 of
Part 24 of Division 3, and Article 2 (commencing with Section 47633)
of Chapter 6 of Part 26.8 of Division 4 shall be reduced by the
product of 4 percent and the fraction determined pursuant to
paragraph (2).
(1) Subtract the revenue forecast determined pursuant to
subdivision (a) of Section 3.94 of the Budget Act of 2011 from
eighty-six billion four hundred fifty-two million five hundred
thousand dollars ($86,452,500,000).
(2) Divide the lesser of two billion dollars ($2,000,000,000) or
the amount calculated in paragraph (1) by two billion dollars
($2,000,000,000).
(d) Notwithstanding any other law, and in addition to the
reductions authorized by subdivision (c), the revenue limit for each
school district, county office of education, and charter school
determined pursuant to Article 3 (commencing with Section 2550) of
Chapter 12 of Part 2 of Division 1 of Title 1, Article 2 (commencing
with Section 42238) of Chapter 7 of Part 24 of Division 3, and
Article 2 (commencing with Section 47633) of Chapter 6 of Part 26.8
of Division 4 shall be reduced by 0.65 percent.
(e) This section does not affect the number of instructional days
or instructional minutes that may be reduced pursuant to Section
46201.2.
(f) The revenue limit reductions authorized by this section, when
combined with the reductions applied under subdivision (c) of Section
3.94 of the Budget Act of 2011, may not be applied so as to reduce
school funding below the requirements of Section 8 of Article XVI of
the California Constitution based on the applicable revenues
estimated by the Department of Finance pursuant to Section 3.94 of
the Budget Act of 2011.
(g) This section shall be operative on February 1, 2012, only for
the 2011-12 school year and only if subdivision (c) of Section 3.94
of the Budget Act of 2011 is operative.
SEC. 2. Section 46201.4 is added to the
Education Code, to read:
46201.4. In computing the revenue limit for each school district,
county office of education, and charter school for the 2012-13
fiscal year pursuant to this article, the revenue limit shall be
determined as if the revenue limit for each school district, county
office of education, and charter school had been determined for the
2011-12 fiscal year without being reduced by the percentage specified
in subdivision (d) of Section 46201.3.
SECTION 1. Section 2558.46 of the
Education Code is amended to read:
2558.46. (a) (1) For the 2003-04 fiscal year, the revenue limit
for each county superintendent of schools determined pursuant to this
article shall be reduced by a 1.195 percent deficit factor.
(2) For the 2004-05 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 0.323 percent deficit factor.
(3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each county superintendent of schools determined pursuant to this
article shall be reduced further by a 1.826 percent deficit factor.
(4) For the 2005-06 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced further by a 0.898 percent deficit factor.
(5) For the 2008-09 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 7.839 percent deficit factor.
(6) For the 2009-10 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by an 18.621 percent deficit factor.
(7) For the 2010-11 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by an 18.250 percent deficit factor.
(8) For the 2011-12 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 20.041 20.691 percent
deficit factor.
(b) In computing the revenue limit for each county superintendent
of schools for the 2006-07 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2003-04,
2004-05, and 2005-06 fiscal years without being reduced by the
deficit factors specified in subdivision (a).
(c) In computing the revenue limit for each county superintendent
of schools for the 2010-11 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2009-10
fiscal year without being reduced by the deficit factors specified in
subdivision (a).
(d) In computing the revenue limit for each county superintendent
of schools for the 2011-12 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2010-11
fiscal year without being reduced by the deficit factors specified in
subdivision (a).
(e) In computing the revenue limit for each county superintendent
of schools for the 2012-13 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2011-12
fiscal year without being reduced by the deficit factor specified in
subdivision (a).
SEC. 2. Section 42238.146 of the
Education Code is amended to read:
42238.146. (a) (1) For the 2003-04 fiscal year, the revenue limit
for each school district determined pursuant to this article shall
be reduced by a 1.198 percent deficit factor.
(2) For the 2004-05 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.323 percent deficit factor.
(3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each school district determined pursuant to this article shall be
further reduced by a 1.826 percent deficit factor.
(4) For the 2005-06 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.892 percent deficit factor.
(5) For the 2008-09 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
7.844 percent deficit factor.
(6) For the 2009-10 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
18.355 percent deficit factor.
(7) For the 2010-11 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
17.963 percent deficit factor.
(8) For the 2011-12 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
19.754 20.404 percent deficit factor.
(b) In computing the revenue limit for each school district for
the 2006-07 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2003-04, 2004-05, and 2005-06 fiscal
years without being reduced by the deficit factors specified in
subdivision (a).
(c) In computing the revenue limit for each school district for
the 2010-11 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2009-10 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
(d) In computing the revenue limit for each school district for
the 2011-12 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2010-11 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
(e) In computing the revenue limit for each school district for
the 2012-13 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2011-12 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
SEC. 3. Section 57 of Chapter 7 of the Statutes of
2011 is amended to read:
SEC. 57. (a) It is the intent of the Legislature that basic aid
school districts assume categorical funding reductions proportionate
to the revenue limit reductions implemented for nonbasic aid
school districts in the 2008-09 and 2009-10 fiscal years. It is
the intent of the Legislature that the reductions to categorical
funding for basic aid school districts set forth in this section be
restored at the same time as, and in direct proportion to, reductions
in the deficit factor for school district revenue limits set forth
in Section 42238.146 of the Education Code. The Superintendent of
Public Instruction shall reduce the amount of categorical funding
allocated to basic aid school districts in the 2011-12 fiscal year,
as follows:
(1) For the 2011-12 fiscal year, the State Department of Education
shall notify each basic aid school district, by September 1, 2012,
or two months after the Budget Act of 2012 is enacted, whichever is
later, of the amount of funds to be reduced from its categorical
funding allocations, as follows:
(A) Multiply each district's 2011-12 fiscal year total revenue
limit subject to the deficit factor specified in paragraph (5) of
subdivision (a) of Section 42238.146 of the Education Code,
calculated as of the 2011-12 fiscal year certified second principal
apportionment, by 8.92 9.57 percent.
(B) The department shall recover from categorical funds identified
in paragraph (2) and apportioned in the 2012-13 fiscal year to
school districts that were basic aid school districts in the 2011-12
fiscal year, the lesser of the amount calculated in subparagraph (A)
or the amount by which the sum of the amounts described in
subdivision (h) of Section 42238 of the Education Code exceeds the
school district's revenue limit. This result will be further limited
by the following:
(i) The amount of categorical funds to be reduced shall be limited
to the extent that the provisions of Section 41975 of the Education
Code cannot be met through other state aid.
(ii) If the amount determined in subparagraph (A) exceeds the
amount of categorical funding owed or paid in the 2012-13 fiscal year
to the basic aid school district for programs identified in
paragraph (2), the department shall recover the lesser amount.
(2) The State Department of Education shall recover the amount of
funds calculated in paragraph (1) and may offset funds for any
categorical program to be received in the 2012-13 fiscal year, with
the exception of funds received under the After School Education and
Safety Program, the Quality Education Investment Act of 2006, and
child care and development.
(b) By June 30, 2013, the State Department of Education shall
report to the Controller and the Director of Finance the amounts that
were recovered from each categorical education program and the
corresponding item of appropriation in the Budget Act of 2011 that is
to be reduced. The amounts so reduced shall revert to the General
Fund. The reductions pursuant to this subdivision shall be reductions
in the amount appropriated for purposes of Section 8 of Article XVI
of the California Constitution for the 2011-12 fiscal year.
(c) For purposes of this section, "basic aid school district"
means a school district that does not receive from the state, for the
2011-12 fiscal year, an apportionment of state funds pursuant to
subdivision (h) of Section 42238 of the Education Code.
SEC. 3. SEC. 4. In restoration of
any moneys reduced pursuant to paragraph (1) of subdivision (c) of
Section 3.94 of the Budget Act of 2011, the sum of two hundred
forty-eight million dollars ($248,000,000) is hereby appropriated
from the General Fund to the State Department of Education, Program
10-Instruction, for transfer to Section A of the State School Fund,
for Home to School Transportation and Small School District
Transportation for the 2011-12 fiscal year, in augmentation of
Item 6110-111-0001 of Section 2.00 of the Budget Act of 2011.
SEC. 4. SEC. 5. This act is a bill
providing for appropriations related to the Budget Bill within the
meaning of subdivision (e) of Section 12 of Article IV of the
California Constitution, has been identified as related to the budget
in the Budget Bill, and shall take effect immediately.