Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 200

Introduced by Assembly Member Hagman

January 29, 2013

An act to amend begin delete Section 42238.1 end delete begin insert Sections 42605 and 42606 end insert of the Education Code, relating to education finance.

LEGISLATIVE COUNSEL’S DIGEST

AB 200, as amended, Hagman. Education finance: begin delete inflation adjustment to revenue limits. end delete begin insert categorical programs. end insert

begin delete

Existing

end delete

begin insert (1) end insert begin insert   end insert begin insert Existing end insert law establishes begin delete the public elementary and secondary school system in this state and further establishes a funding system under which the state apportions funds to local educational agencies in accordance with school district revenue limits that are calculated as specified. Existing law requires the Superintendent of Public Instruction to annually calculate an inflation adjustment, as specified, that is then used in calculating school district revenue limits end delete begin insert various categorical education programs and appropriates the funding for those programs in the annual Budget Act. Existing law requires the Superintendent of Public Instruction, for the 2008-09 to 2014-15 fiscal years, inclusive, to apportion from the amounts provided in the annual Budget Act for specified categorical education programs an amount based on the relative proportion that the local educational agency received in the 2008-09 fiscal year for those programs and authorizes local educational agencies, for those fiscal years, to use these funds, with specified exceptions, for any educational purpose, to the extent permitted by federal law. Existing law requires a school district that receives funding on behalf of a charter school pursuant to certain provisions, for the 2008-09 to 2014-15 fiscal years, inclusive, to continue to distribute the funds to those charter schools based on the same relative proportion that the school district distributed in the 2007-08 fiscal year, as adjusted by the school district to reflect changes in charter school attendance in the school district. Existing law requires a local educational agency to report expenditures of these funds to the State Department of Education. Existing law also requires the Superintendent, for the 2010-11 to 2014-15 fiscal years, inclusive, to allocate a supplemental categorical block grant to a charter school that began operation on or after the 2008-09 fiscal year, as specified end insert .

This bill would begin delete make nonsubstantive changes to the provision requiring the annual calculation of the inflation adjustment end delete begin insert delete the 2014-15 fiscal year termination dates and would require, commencing with the 2014-15 fiscal year, the apportionments from the categorical education programs, as described above, to be apportioned to recipients by multiplying the recipient’s per-pupil rate, calculated as specified, by the recipient’s current fiscal year average daily attendance. The bill would also require the department to adopt uniform definitions for reporting the expenditure of the funds and would require a local educational agency, as a condition of receiving the funds, to (A) report the expenditure of those funds to the department, and (B) post information on the expenditure of the funds on the Internet Web site of the local educational agency. By requiring school districts to continue to distribute funds to charter schools, as discussed above, beyond the 2014-15 fiscal year, the bill would impose a state-mandated local program end insert .

begin insert

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 42605 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42605.  

(a) (1) Unless otherwise prohibited under federal law
or otherwise specified in subdivision (e), begin delete for end delete begin insert commencing with end insert the
2008-09 fiscal year begin delete to the 2014-15 fiscal year, inclusive end delete , recipients
of funds from the items listed in paragraph (2) may use funding
received, pursuant to subdivision (b), from any of these items listed
in paragraph (2) that are contained in Section 2.00 of the annual
Budget Act, for any educational purpose.

(2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001 of Section
2.00.

(b) (1)  begin insert (A) end insert begin insert   end insert For the 2009-10 fiscal year to the begin delete 2014-15 end delete begin insert 2013-14 end insert
fiscal year, inclusive, the Superintendent or other administering
state agency, as appropriate, shall apportion from the amounts
provided in the annual Budget Act for the items enumerated in
paragraph (2) of subdivision (a) an amount to recipients based on
the same relative proportion that the recipient received in the
2008-09 fiscal year for the programs funded through the items
enumerated in paragraph (2) of subdivision (a).

begin insert

(B) (i) Commencing with the 2014-15 fiscal year, the
Superintendent or other administering state agency, as appropriate,
shall, for the items enumerated in paragraph (2) of subdivision
(a), apportion an amount to a recipient by multiplying the per-pupil
rate, as determined in clause (ii), by the recipients current fiscal
year average daily attendance.

end insert begin insert

(ii) For purposes of this subparagraph, the per-pupil rate shall
be determined by dividing the amount a recipient received in the
2008-09 fiscal year for the programs funded through the items
enumerated in paragraph (2) of subdivision (a) by the recipient’s
2008-09 fiscal year average daily attendance.

end insert

(2) This section and Section 42 of Chapter 12 of the Third
Extraordinary Session of the Statutes of 2009 do not authorize a
school district that receives funding on behalf of a charter school
pursuant to Sections 47634.1 and 47651 to redirect this funding
for another purpose unless otherwise authorized in law or pursuant
to an agreement between a charter school and its chartering
authority. Notwithstanding paragraph (1), begin delete for end delete begin insert commencing with end insert
the 2008-09 fiscal year begin delete to the 2014-15 fiscal year, inclusive end delete , a
school district that receives funding on behalf of a charter school
pursuant to Sections 47634.1 and 47651 shall continue to distribute
the funds to those charter schools based on the relative proportion
that the school district distributed in the 2007-08 fiscal year, and
shall adjust those amounts to reflect changes in charter school
attendance in the begin insert school end insert district. The amounts allocated shall be
adjusted for any greater or lesser amount appropriated for the items
enumerated in paragraph (2) of subdivision (a). For a charter school
that began operation in the 2008-09 fiscal year, if a school district
received funding on behalf of that charter school pursuant to
Sections 47634.1 and 47651, the school district shall continue to
distribute the funds to that charter school based on the relative
proportion that the school district distributed in the 2008-09 fiscal
year and shall adjust the amount of those funds to reflect changes
in charter school attendance in the begin insert school end insert district. The amounts
allocated shall be adjusted for any greater or lesser amount
appropriated for the items enumerated in paragraph (2) of
subdivision (a).

(3) Notwithstanding paragraph (1), begin delete for end delete begin insert commencing with end insert the
2008-09 fiscal year begin delete to the 2014-15 fiscal year, inclusive end delete , the
Superintendent shall apportion from the amounts appropriated by
Item 6110-211-0001 of Section 2.00 of the annual Budget Act an
amount to a charter school in accordance with the per-pupil
methodology prescribed in subdivision (c) of Section 47634.1.

(4) Notwithstanding paragraph (1), begin delete for end delete begin insert commencing with end insert the
2008-09 fiscal year begin delete to the 2014-15 fiscal year, inclusive end delete , the
Superintendent shall apportion from the amounts provided in the
annual Budget Act an amount to a school district, charter school,
and county office of education based on the same relative
proportion that the local educational agency received in the
2007-08 fiscal year for the programs funded through the following
items contained in Section 2.00 of the annual Budget Act:
6110-104-0001, 6110-105-0001, 6110-156-0001, 6110-190-0001,
Schedule (3) of 6110-193-0001, 6110-198-0001, 6110-232-0001,
and Schedule (2) of 6110-240-0001.

(5) For purposes of paragraph (4), if a direct-funded charter
school began operation in the 2008-09 fiscal year, the amount that
the charter school was entitled to receive from the items
enumerated in paragraph (4) for the 2008-09 fiscal year, as certified
by the Superintendent in March 2009, is deemed to have been
received in the 2007-08 fiscal year.

(c) (1) This section does not obligate the state to refund or repay
reductions made pursuant to this section. A decision by a school
district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.

(2) (A) As a condition of receipt of funds, the governing board
of the school district or governing board of the county office of
education, as appropriate, at a regularly scheduled open public
hearing shall take testimony from the public, discuss, approve or
disapprove the proposed use of funding, and make explicit for each
of the budget items in paragraph (2) of subdivision (a) the purposes
for which the funds will be used.

(B) The regularly scheduled open public hearing held pursuant
to subparagraph (A) shall be held before and independent of a
meeting where the governing board of the school district or
governing board of the county office of education adopts a budget.
If the governing board intends to close a program funded by the
items listed in paragraph (2) of subdivision (a), the governing board
shall identify, in the notice of the agenda of the public hearing or
at another public hearing, the program or programs proposed to
be closed.

(3)  begin delete Using end delete begin insert (A) end insert begin insert   end insert begin insert As a condition of receipt of funds, using end insert the
Standardized Account Code Structure reporting process, a local
educational agency shall report begin insert to the department end insert expenditures of
funds pursuant to the authority of this section by using the
appropriate function codes to indicate the activities for which these
funds are expended. The department shall collect and provide this
information to the Department of Finance and the appropriate
policy and budget committees of the Legislature by April 15, 2010,
and annually thereafter on April 15 begin delete until, and including, April 15,
2016 end delete .

begin insert

(B) The department shall adopt uniform definitions for the
Standardized Account Code Structure reporting process.

end insert begin insert

(4) As a condition of receipt of funds, a local educational agency
shall post information on the expenditures of funds pursuant to
the authority of this section on its Internet Web site.

end insert

(d)  begin delete For end delete begin insert Commencing with end insert the 2008-09 fiscal year begin delete to the 2014-15
fiscal year, inclusive, end delete local educational agencies that use the
flexibility provision of this section shall be deemed to be in
compliance with the program and funding requirements contained
in statutory, regulatory, and provisional language, associated with
the items enumerated in subdivision (a).

(e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:

(1) For Item 6110-105-0001 of Section 2.00 of the annual
Budget Act, the amount authorized for flexibility shall exclude the
funding provided to fund remedial educational services pursuant
to Provision 4. For Item 6110-156-0001 of Section 2.00 of the
annual Budget Act, the amount authorized for flexibility shall
exclude the funding provided for instruction of CalWORKs-eligible
begin delete students end delete begin insert pupils end insert pursuant to Schedules (2) and (3) and Provisions
2 and 4.

(2) (A) Any instructional materials purchased by a local
educational agency for kindergarten and grades 1 to 8, inclusive,
and for grades 9 to 12, inclusive, shall be aligned with the state
standards adopted pursuant to Section 60605 or 60605.8, and shall
also meet the reporting and sufficiency requirements contained in
Section 60119.

(B) For purposes of this section, begin delete “sufficiency” means end delete
begin insert “sufficiency requirements” are the requirements end insert that each pupil
has sufficient textbooks and instructional materials in the four core
areas as defined by Section 60119 and that all pupils within the
local educational agency who are enrolled in the same course shall
have identical textbooks and instructional materials, as specified
in Section 1240.3.

(3) For Item 6110-195-0001 of Section 2.00 of the annual
Budget Act, the item shall exclude moneys that are required to
fund awards for teachers that have previously met the requirements
necessary to obtain these awards, until the award is paid in full.

(4) For Item 6110-266-0001 of Section 2.00 of the annual
Budget Act, a county office of education shall conduct at least one
site visit to each of the required schoolsites pursuant to Section
1240 and shall fulfill all of the duties set forth in Sections 1240
and 44258.9.

(5) For Item 6110-198-0001 of Section 2.00 of the annual
Budget Act, a school district or county office of education that
operates the child care component of the Cal-SAFE program shall
comply with paragraphs (5) and (6) of subdivision (c) of Section
54746.

(f) This section does not invalidate any state law pertaining to
teacher credentialing requirements or the functions that require
credentials.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 42606 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42606.  

(a) To the extent funds are provided, begin delete for end delete begin insert commencing
with end insert the 2010-11 begin delete to the 2014-15 end delete fiscal begin delete years, inclusive end delete begin insert year end insert , the
Superintendent shall allocate a supplemental categorical block
grant to a charter school that began operation during or after the
2008-09 fiscal year. These supplemental categorical block grant
funds may be used for any educational purpose. Commencing in
the 2011-12 fiscal year, a locally or direct funded charter school
that converted from a preexisting school begin delete between end delete begin insert on or after end insert the
2008-09 begin delete and 2014-15 end delete fiscal begin delete years, inclusive end delete begin insert year end insert , is not eligible
for funding specified in this section. A charter school that receives
funding pursuant to this subdivision shall not receive additional
funding for programs specified in paragraph (2) of subdivision (a)
of Section 42605, with the exception of the program funded
pursuant to Item 6110-211-0001 of Section 2.00 of the annual
Budget Act.

(b) (1) For the 2010-11 fiscal year, the supplemental categorical
block grant shall equal one hundred twenty-seven dollars ($127)
per unit of charter school average daily attendance as determined
at the 2010-11 second principal apportionment for charter schools
commencing operations during or after the 2008-09 fiscal year.
A locally funded charter school that converted from a preexisting
school during or after the 2008-09 fiscal year is not eligible for
funding specified in this section.

(2)  begin delete For end delete begin insert Commencing with end insert the 2011-12 begin delete to the 2014-15 end delete fiscal
begin delete years, inclusive end delete begin insert year end insert , the supplemental categorical block grant
shall equal one hundred twenty-seven dollars ($127) per unit of
charter school average daily attendance as determined at the current
year second principal apportionment for charter schools
commencing operations during or after the 2008-09 fiscal year.
In lieu of this supplemental grant, a school district shall provide
new conversion charter schools that commenced operations within
the district during or after the 2008-09 fiscal year, one hundred
twenty-seven dollars ($127) per unit of charter school average
daily attendance as determined at the current year second principal
apportionment. This paragraph does not preclude a school district
and a new conversion charter school from negotiating an alternative
funding rate. Absent agreement from both parties on an alternative
rate, the school district shall be obligated to provide funding at the
one hundred twenty-seven dollars ($127) per average daily
attendance rate.

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin delete

SECTION 1.  

Section 42238.1 of the Education Code is
amended to read:

42238.1.  

(a) For the 1986-87 fiscal year and each fiscal year
up to and including the 1998-99 fiscal year, the Superintendent
shall compute an inflation adjustment equal to the product of
paragraphs (1) and (2):

(1) Compute the sum of the following:

(A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for school districts of
similar type.

(B) The amount, if any, per unit of average daily attendance
received by the school district pursuant to Article 8 (commencing
with Section 46200) of Chapter 2 of Part 26 of Division 4 for the
prior fiscal year.

(2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases
of Goods and Services for the United States, as published by the
United States Department of Commerce for the 12-month period
ending in the third quarter of the prior fiscal year. This percentage
change shall be determined using the latest data available as of
May 1 of the preceding fiscal year compared with the annual
average value of the same deflator for the 12-month period ending
in the third quarter of the second preceding fiscal year, using the
latest data available as of May 1 of the second preceding fiscal
year, as reported by the Department of Finance.

(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the Superintendent shall compute an inflation adjustment equal to
the product of paragraphs (1) and (2):

(1) Compute the sum of the following:

(A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for school districts of
similar type.

(B) The amount, if any, per unit of average daily attendance
received by the school district pursuant to Article 8 (commencing
with Section 46200) of Chapter 2 of Part 26 of Division 4 for the
prior fiscal year.

(2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases
of Goods and Services for the United States, as published by the
United States Department of Commerce for the 12-month period
ending in the third quarter of the prior fiscal year. This percentage
change shall be determined using the latest data available as of
May 10 of the preceding fiscal year compared with the annual
average value of the same deflator for the 12-month period ending
in the third quarter of the second preceding fiscal year, using the
latest data available as of May 10 of the preceding fiscal year, as
reported by the Department of Finance.

(c) This section shall become operative July 1, 1986.

end delete