Amended in Assembly April 18, 2013

Amended in Assembly April 3, 2013

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 Sections 42605 and 42606 of the Education Code, relating to education finance.

LEGISLATIVE COUNSEL’S DIGEST

AB 200, as amended, Hagman. Education finance: categorical programs.

(1) Existing law establishes 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.

This bill would 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 begin delete at each schoolsite end delete to the department, begin insert as specified, end insert and (B) post information on begin insert the Internet Web site of the local educational agency on end insert the expenditure of the funds begin delete at each schoolsite on the Internet Web site of the local educational agency end delete begin insert at the school district level on a per pupil basis and identify separately the amount expended at each schoolsite on a per pupil basis end insert . 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.

(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.

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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Section 42605 of the Education Code is amended
to read:

42605.  

(a) (1) Unless otherwise prohibited under federal law
or otherwise specified in subdivision (e), commencing with the
2008-09 fiscal year, 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) (A) For the 2009-10 fiscal year to the 2013-14 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).

(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 recipient’s current fiscal
year average daily attendance.

(ii) For purposes of this subparagraph, the per-pupil rate shall
be determined by dividing the amount a recipient received in the
begin delete 2008-09 end delete begin insert 2013- end insert begin insert 14 end insert fiscal year for the programs funded through the
items enumerated in paragraph (2) of subdivision (a) by the
recipient’s begin delete 2008-09 end delete begin insert 2013- end insert begin insert 14 end insert fiscal year average daily attendance.

(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), commencing with the
2008-09 fiscal year, 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 school 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 school 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), commencing with the
2008-09 fiscal year, 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), commencing with the
2008-09 fiscal year, 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) (A)  begin delete As a condition of receipt of funds, using the
Standardized Account Code Structure reporting process, a local
educational agency shall report to the department expenditures of
funds at each schoolsite pursuant to the authority of this section end delete
begin insert The Legislature hereby finds and declares that, notwithstanding
the flexibility authorized by paragraph (1) of subdivision (a), the
intent of supplemental state aid is to ensure every pupil at every
schoolsite receives effective instruction in order to preserve the
fundamental right to a basic education and opportunity to learn.
Accordingly, as a condition of receipt of funds for this purpose
and to ensure reasonable transparency at the schoolsite level, each
local educational agency receiving funds pursuant to this section
shall report to the department expenditures of these funds at the
school district level and identify separately the amount expended
at each schoolsite pursuant to the definitions adopted pursuant to
subparagraph (B). end insert 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.

(B) The department shall adopt uniform definitions for the
Standardized Account Code Structure reporting process begin insert that, at a
minimum, include all data field definitions consistent with
school-level expenditure reporting adopted by the department
pursuant to the requirements of the federal American Recovery
and Reinvestment Act of 2009 (Public Law 111-5) end insert .

(4) As a condition of receipt of funds, a local educational agency
shall post information begin insert on its Internet Web site end insert on the expenditures
of funds begin delete at each schoolsite pursuant to the authority of this section
on its Internet Web site end delete begin insert at the school district level on a per pupil
basis and identify separately the amount expended at each
schoolsite on a per pupil basis end insert .

(d) Commencing with the 2008-09 fiscal year 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
pupils 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, “sufficiency requirements” are
the requirements 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.

SEC. 2.  

Section 42606 of the Education Code is amended to
read:

42606.  

(a) To the extent funds are provided, commencing with
the 2010-11 fiscal year, 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 on or after the 2008-09 fiscal year, 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) Commencing with the 2011-12 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 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 school 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.

SEC. 3.  

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.