BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 97|
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THIRD READING
Bill No: AB 97
Author: Assembly Budget Committee
Amended: 6/13/13 in Senate
Vote: 21
ASSEMBLY FLOOR : Not relevant
SUBJECT : Budget Act of 2013: School Finance
SOURCE : Author
DIGEST : This bill establishes a Local Control Funding Formula
(LCFF) for school districts, charter schools, and county offices
of education (COEs). In addition, requires school districts and
COEs, on or before July 1, 2014 (with annual updates beginning
in 2015), to adopt a local control and accountability plan
(LCAP) to measure various state and local goals, as specified,
using a template adopted by the State Board of Education (SBE).
ANALYSIS : This bill replaces the existing revenue limit
(discretionary) and categorical funding structure with a LCFF,
beginning in the 2013-14 fiscal year, comprised of a base grant,
supplemental grant and concentration grant for school districts,
charter schools and county offices of education. This bill
provides supplemental grant funding equal to 20% of the base
grant for every pupil identified as either an English learner
(EL), eligible for a free or reduced price meal (FRPM), or in
foster care. This bill also provides concentration grant
funding for school districts with 55% or more pupils in the
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three categories of disadvantage. Concentration grants are
equal to 50% of the base grant for each pupil above 55% of
enrollment. The formula uses an unduplicated count, meaning
that pupils that fall into more than one category are counted
only once.
This bill:
1. Establishes a LCFF for school districts, charter schools,
and COEs.
2. Provides target base grant amounts per unit of average daily
attendance (ADA), adjusted by grade level as follows:
Grades kindergarten through 3: $6,845
Grades 4 to 6: $6,947
Grades 7 and 8: $7,154
Grades 9 to 12: $8,289
1. Establishes an eight-year phase-in timeline, as specified,
to incrementally close the gap between actual funding and the
target level of funding.
2. Establishes a supplemental grant equal to 20% of the base
grant for every pupil identified as either an EL, eligible
for a FRPM, or in foster care; and uses an "unduplicated
count" meaning that pupils who fall into more than one
category are counted only once.
3. Establishes a concentration grant equal to 50% of the base
grant for every unduplicated pupil above the threshold of 55%
of enrollment.
4. Requires the pupil-to-teacher ratio in grades K-3 to be no
more than 24 to 1, when the formula is fully implemented,
unless a higher ratio is negotiated through collective
bargaining, and requires a gradual reduction to the 24 to 1
ratio during the phase-in period.
5. Caps funding for Home-to-School transportation (HTS) and the
Targeted Instructional Improvement Program (TIIG) at their
2012-13 levels and continues to provide this funding to
school districts currently receiving it, in addition to their
LCFF base grant.
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6. Requires that HTS funds be spent for purposes of pupil
transportation.
7. Maintains funding and program requirements for the following
categorical programs:
Special Education;
After School Education and Safety Program;
State Preschool;
Quality Education Investment Act;
Assessments;
American Indian Education Centers;
Early Childhood Education Programs;
Partnership Academies;
Agricultural Vocational Education;
Specialized Secondary Programs;
Foster Youth Services Program; and
Adults in Correctional Facilities.
1. Repeals funding and program requirements for all other
categorical programs and redirects their monies to the
supplemental and concentration grant portions of the LCFF.
2. Requires school districts that spent funds on Regional
Occupational Centers / Programs and Adult Education in
2012-13 to spend the same level of funding on those programs
in 2013-14 and 2014-15.
3. Establishes a hold harmless provision to maintain total
revenue limit and categorical program funding for each
district and charter school at its 2012-13 level, unadjusted
for changes in ADA or Cost of Living Adjustment (COLA).
4. Provides that basic aid districts will continue to receive
the same level of state aid as allocated in 2012-13.
However, provides that local property tax revenues will be
used to offset the entire LCFF allocation if, after the
implementation period, their property tax revenues exceed the
LCFF target.
5. Calculates an Economic Recovery Target (ERT) for each school
district. The ERT will be a per-pupil rate consisting of:
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The district's revenue limit in 2007-08, regardless of
the mix of state aid and local property tax (LPT) revenue
that funded the revenue limit. (The ERT does not count a
basic aid district's "excess" local property tax revenue in
the per-pupil rate.)
Revenue limit COLAs for 2008-09 through 2020-21.
The district's categorical funding in 2007-08 (before
Control Section 12.42 or "fair share" reductions to
categorical programs were implemented).
Most school districts will receive the greater of the LCFF
target or ERT. For the vast majority of school districts, the
LCFF target for 2020-21 will be higher than the ERT for
2020-21. For about 230 districts, the ERT, however, will be
higher. Over the next eight years, roughly 130 of these
districts will receive additional payments in equal increments
in excess of their LCFF payments to restore them to their ERT
by 2020-21. (Districts that have an ERT above the 90th ERT
percentile will receive no additional funding in excess of the
90th percentile. Approximately 96 districts have rates that
are this high-more than $14,500 per pupil.) This calculation
is intended to ensure that nearly all districts, with the
exception of those with unusually high levels of historical
per-pupil funding, are restored to their 2007-08 funding
levels.
1. Specifies that Necessary Small Schools (NSS) funding will be
the same as current law for geographically isolated
schools/districts going forward. However, for those NSS that
are "single school, school districts" and that can't meet the
miles traveled, and other criteria, as specified, a "hold
harmless" (guarantee of same funding level as 2012-13)
provision will be in effect, even if their funding level
exceeds their LCFF target.
2. Repeals the requirement that districts receiving state
general obligation bond funding for facilities set aside 3%
of the general fund expenditures in a routine maintenance
account.
3. Replaces the existing funding model for COEs and replaces it
with a two-part formula based on the cost of providing
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regional services and alternative education.
4. Provides that the regional services component of the COE
funding formula consist of the following:
A. A base operations grant of $655,920 per county;
B. An additional amount of $109,320 per school district in
the county;
C. An additional $70 per ADA in the counties with up to
30,000 ADA;
$60 per ADA for counties with ADA between 30,000 and 60,000;
$50 per ADA in counties with ADA between 60,000 and 140,000;
and
$40 per ADA in counties with ADA above 140,000.
1. Provides that the alternative education component of the COE
funding formula include:
A. An unspecified base grant, per eligible pupil, equal to
the sum of the 2012-13 per-pupil undeficited statewide
average juvenile court school base revenue limit.
(eligible pupils are incarcerated, on probation,
probation-referred, or mandatorily expelled).
B. A supplemental grant of 35% for unduplicated pupils who
are English learners, receiving free or reduced price
meals, or in foster care.
C. A concentration grant of 35% for each unduplicated pupil
above 50% of enrollment.
1. Requires school districts and COEs, on or before July 1,
2014 (with annual updates beginning in 2015), to adopt a LCAP
using a template adopted by the SBE. Further requires the
LCAP to be effective for three year, updated annually.
2. Requires the LCAP to include annual goals for pupils
(including each subgroup of pupils) to be achieved for state
and local priorities (as specified) and the specific actions
the school district, or COE, will take during each year of
the plan to achieve specified goals.
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3. Authorizes school districts and COEs to establish local
priorities for inclusion in the LCAP and requires the
following state priorities to be included in the LCAP:
A. Priorities related to the Williams v. State of
California settlement agreement (2004) - fully credentialed
teachers, instructional materials, and school facilities.
B. Implementation of the academic and performance
standards, including English language development
standards.
C. Parental involvement, as specified.
D. Pupil achievement, as measured by statewide assessments,
the Academic Performance Index (API), percentage of pupils
meeting A-G graduation requirements, percentage of ELs
making progress toward English proficiency, the EL
reclassification rate, the percentage of pupils who have
passed the advanced placement exams, and the percentage of
pupils demonstrating college preparedness.
E. Pupil engagement, as measured by attendance, dropout and
graduation rates, and pupil expulsions/suspensions.
F. School climate as measured by suspensions/expulsion
rates, and other local measures, as specified.
G. The extent to which pupils (including ELs and special
needs) have access and are enrolled in a broad course of
study, as specified.
H. Pupil outcomes, if available, for non-state assessed
courses of study in grades 1-12 (e.g., other history-social
science, visual performing arts, physical education, etc.).
COEs are required to include outcomes specific to pupils
in alternative programs, as specified.
1. Requires a school district and COE, as part of the annual
update of the LCAP, to include a listing and description of
the expenditures in the fiscal year implementing the specific
information included in the LCAP, as specified.
2. Requires the superintendent of the school district and COE
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to do the following:
A. Present the LCAP, prior to its adoption, to the public
and parent advisory committees (including the EL parent
advisory committee) for review and comment and requires the
superintendent to respond in writing to these comments, as
specified.
B. Review the schoolsite plans for student achievement
required under current law and ensure the LCAP is
consistent with the schoolsite plans, as specified.
1. Establishes a public process for the review and adoption of
LCAPs and requires a school district and COE to establish a
parent advisory committee, including one specific to EL
parents, as specified.
2. Requires a charter school petition to include a description
of the school's annual goals for all students and for each
subgroup of students to be achieved in applicable state
priority areas as defined above and the specific annual
actions to achieve these goals, as specified. Further
authorizes the petition to establish additional priorities
and goals in the same manner as districts and COEs.
3. Requires a charter petition, as part of describing pupil
outcomes, to include outcomes related to the applicable state
priorities defined above, as specified.
4. Requires a charter school, beginning in 2015, to provide an
update to its petition no later than July 1 of each year and
requires the update to use the SBE template and include the
following:
A. A review of the progress toward the goals included in
the charter, an assessment of the effectiveness of the
specific actions of the charter school in meeting its
schools, as specified.
B. A list and description of the expenditures for the
subsequent year implementing the specific actions included
in the charter, as specified.
1. Requires charter schools to consult with teachers,
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principals, other schoolsite staff, parents, and pupils in
the annual update to the charter plan referenced above.
2. Requires the SBE, on or before March 31, 2014, to establish
templates for use by school districts, COEs, and charter
schools to complete the LCAP, as specified.
3. Requires the SBE, on or before October 1, 2015, to adopt
evaluation rubrics for all of the following purposes:
A. To assist a school district, COE, or charter school in
evaluating its strengths, weaknesses, and areas that
requirement improvement.
B. To assist a COE in identifying school districts and
charter schools in need of technical assistance, as
specified.
C. To assist the Superintendent of Public Instruction (SPI)
in identifying school districts for which intervention is
warranted, as specified.
1. Establishes the California Collaborative for Educational
Excellence (CCEE) to advise and assist school districts,
COEs, and charter schools in achieving its goals established
in its LCAP or charter petition. Further requires the SPI to
contract with individuals, local education agencies (LEAs),
or organizations with expertise, experience, and a record of
success to carry out the CCEE's mission of providing
technical assistance to LEAs and charter schools, as
specified.
2. Requires a school district to file its LCAP with the COE.
Further establishes a process for the COE to review and
submit recommendations to the district and adopt the LCAP, as
specified. This process includes provisions for the COE to
ensure the LCAP adheres to the SBE template and includes
"expenditures sufficient to implement the specific actions
and strategies included in the LCAP."
3. Requires a COE to file its LCAP with the SPI. Further
establishes a process for the SPI to review and submit
recommendations to the COE and adopt the LCAP, as specified.
This process includes provisions for the SPI to ensure the
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LCAP adheres to the SBE template and includes "expenditures
sufficient to implement the specific actions and strategies
included in the LCAP."
4. Requires the COE or SPI, if it does not approve a school
district or COE's LCAP or if the district/COE requests
technical assistance, to provide the assistance to the
district/COE, including any of the following:
A. To assist in identifying strengths and weaknesses with
regard to the state priorities, as specified.
B. Assignment of an academic expert or team of academic
experts to assist in identifying and implementing effective
programs that are designed to improve outcomes for pupil
subgroups, as specified.
C. The assignment of the CCEE to provide advice and
assistance to the school district/COE, as specified.
1. Authorizes the SPI to identify school districts and COEs in
need of intervention and requires the SPI to only intervene
in districts and COEs that meet both of the following
criteria:
A. The school district or COE did not improve outcomes for
three or more pupil subgroups in regard to more than one
state or local priority in three out of four consecutive
school years.
B. The CCEE has provided advice and assistance to the
district or COE and submits findings to the SPI, as
specified.
1. Authorizes the SPI, for districts and COEs in need of
intervention and with SBE approval, to do one or more of the
following:
A. Make changes to the district or COE's LCAP.
B. Develop and impose a budget revision the SPI determines
would allow the district or COE to improve the outcomes for
all pupil subgroups in regard to state and local
priorities.
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C. Stay or rescind an action, if that action is not
required by a local collective bargaining agreement that
would prevent the district or COE from improving outcomes
for all pupil subgroups, in regard to state and local
priorities.
D. Appoint an academic trustee to exercise the powers and
authority specified in this measure on behalf of the SPI.
1. Authorizes the SBE, whether or not it is the chartering
authority, to revoke a charter school's charter if it finds
the charter school failed to improve pupil outcomes across
multiple state and local priorities, as specified.
2. Specifies if a charter school fails to improve pupil
outcomes for pupil subgroups in regard to more than one state
or local priority in three out of four consecutive school
years, all of the following apply:
A. The chartering authority shall provide technical
assistance to the charter school, using the SBE evaluation
rubric, as specified.
B. The SPI may assign, at the request of the chartering
authority and approval of the SBE, the CCEE to provide
technical assistance to the charter school, as specified.
1. Requires a chartering authority to consider the revocation
of any charter school to which the CCEE has provided advice
and assistance and has made either of the following findings:
A. The charter school has failed to implement, or is unable
to implement, the recommendations of the CCEE.
B. The inadequate performance of the charter school is
either so persistent or so acute as to require revocation.
1. Requires a chartering authority to consider the increases in
pupil academic achievement for all groups of pupils served by
the charter school as the most important factor in
determining whether to revoke a charter. Further prohibits a
charter school from appealing a revocation determined based
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on the provisions of this measure.
2. Requires the SBE, no later than January 31, 2014, to adopt
regulations governing the expenditure of supplemental grant
funds, including concentration grant funds. Requires the
regulations to accomplish all of the following:
A. Require a school district, COE, or charter school "to
increase or improve services for unduplicated pupils in
proportion to its increase in funds apportioned on the
basis of the number and concentration of unduplicated
pupils in the district, COE, or charter school."
B. Authorization for the use of funds for schoolwide or
districtwide purposes in a manner that is no more
restrictive than federal No Child Left Behind Act of 2001
Title I funds (poor and needy pupils).
1. Requires school districts, COEs, and charter schools to
establish local policies and procedures to implement a
complaint process in accordance with the current Uniform
Complaint process, as specified.
2. Prohibits the SBE or the SPI from waiving any part of the
Local Control and Accountability Plans.
3. Requires the Department of Education and Department of
Social Services to enter into a memorandum of understanding
to share disaggregated information on foster youth so that
districts, charter schools and COEs can identify pupils in
foster care.
4. Makes various technical and conforming changes to, among
other things, replace statutory references to the revenue
limit with references to the LCFF.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Budget and Fiscal Review Committee, this
bill appropriates $2.1 billion from the General Fund for the
following purposes:
$2 million to the Governor's Office of Planning and Research
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in order for the SBE to develop and adopt regulations, as
specified, develop and adopt evaluation rubrics, and develop
and adopt LCAP templates, as specified;
$2.067 billion to the SPI for allocation to school districts
and charter schools for first year implementation of the LCFF;
and
$32 million to the SPI for allocation to COEs for the County
Local Control Funding Formula, as specified.
PQ:nl 6/13/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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