BILL ANALYSIS Ó
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: SB 81
Author: Budget and Fiscal Review
As Amended: January 30, 2012
Consultant: Kim Connor
Fiscal: Yes
Hearing Date: February 2, 2012
Subject: School Transportation Programs: Funding
Summary: Restores $248 million in Proposition 98 General
Funds for school transportation programs in 2011-12, and
instead applies a reduction of $248 million in Proposition
98 General Funds to school districts and county offices of
education revenue limits in 2011-12. Specifically, this
bill:
1) Increases the school district revenue limit deficit
factor by 0.65 percent -- from 19.754 percent to
20.404 percent - in 2011-12. This adjustment reduces
school district and charter school revenue limit
funding in the current year in order to fully offset
restoration of funding for school transportation
programs in 2011-12.
2) Increases the county office of education revenue
limit deficit factor by 0.65 percent -- from 20.041
percent to 20.691 percent - in 2011-12. This
adjustment reduces county office of education revenue
limit funding in the current year in order to fully
offset restoration of funding for school
transportation programs in 2011-12.
3) Increases the reduction to categorical programs for
Basic Aid districts in 2011-12 by 0.65 percent -- from
8.92 percent to 9.57 percent. This ensures a "fair
share" reduction commensurate with the revenue limit
reduction for non-Basic Aid school districts in
2011-12. Basic Aid districts are defined as districts
that do not receive state funding for revenue limits.
4) Makes an appropriation of $248,000,000 from
-1-
Proposition 98 General Funds to the State Department
of Education, for transfer to Section A of the State
School Fund, to restore funding for the Home-to-School
Transportation (HTST) program and Small School
District Bus Replacement program in 2011-12.
5) Declares this measure is to take effect immediately
as a bill providing for appropriations related to the
Budget Bill.
Existing Law:
1) Provides discretionary funding to school districts,
county offices of education, and charter schools to
support the general costs of operating schools. These
funds are provided based on a formula that takes their
average daily attendance over the course of the year
and multiplies it by their individual funding rate,
known as a revenue limit.
2) Requires, for the 2011-12 school year, that the
revenue limit for each school district and county
office of education be reduced pursuant to a specified
formula, known as a deficit factor.
3) Provides categorical program funding for school
district and county office of education transportation
costs based on the amount received for that purpose in
the prior year, or the agencies' actual transportation
costs, whichever is less. Existing law also requires
school districts and county offices of education to
provide transportation services for student with
disabilities, as specified in the students'
individualized education program. In addition,
existing law also provides categorical grant funding
to small schools districts for purposes of bus
replacement.
Fiscal Effect: This bill is funding neutral to the state
budget. This bill replaces a $248 million General Fund
(Proposition 98) reduction for school transportation
programs in 2011-12 with a $248 million General Fund
-2-
(Proposition 98) that includes reductions for school
district and county office revenue limits, and Basic Aid
categorical programs in 2011-12. (Basic Aid school
districts take a "fair share" reduction, to the extent they
are not limited by Constitutional funding minimums.) While
there is no fiscal effect at the state level, the revenue
limit reductions implemented by this bill will have a
different effect on school districts, county offices of
education, and charter schools than the school
transportation program reductions implemented pursuant law
to current law.
Comments:
Background on HTST Program. The HTST program provides
funds to offset school district cost to transport students
to and from home and school. Allocations are based on
either a district's prior year allocations or approved
costs, whichever is less. In the 1992-93 fiscal year,
school districts were required to establish a base year of
funding for both home-to-school and special education
transportation funding. All future allocations of this
funding are based on the amount districts received in
1992-93.
2011-12 Budget Act. The 2011-12 Budget Act provided a
total of $496 million in Proposition 98 General Fund for
the HTST Program. Of this amount, $491 million is provided
for Pupil Transportation, which includes both allocations
for home-to-school transportation and allocations for some
pupils with disabilities, specifically "severely disabled
and orthopedically impaired" pupils. Another $5 million is
provided for the Small School District Bus Replacement
program.
AB 121 (Chapter 41; Statutes of 2011) authorized additional
reductions to school transportation appropriations in the
Budget Act that would be "triggered" if state revenue
estimates fall below specified levels. In December 2011,
the Department of Finance applied the trigger cut to the
HTST Program, which resulted in the elimination of the
remaining half year of funding for the program in 2011-12.
A trigger cut of $79.6 million was also applied to revenue
-3-
limit funding pursuant to AB 121. This bill would restore
the trigger cut for the HTST program and replace it with an
additional revenue limit cut to school districts and county
offices of education.
Governor Proposes to Eliminate HTST Program in 2012-13. The
Governor proposes to eliminate funding for the HTST program
in 2012-13 for a savings of $496 million. The Governor
also proposes eliminating most other categorical programs
and instead would provide districts with a new weighted
pupil formula in an effort to make more funds discretionary
for school districts.
-4-