BILL ANALYSIS Ó
AB 283
Page 1
Date of Hearing: April 9, 2013
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Das Williams, Chair
AB 283 (Bloom) - As Introduced: February 11, 2013
SUBJECT : Community colleges: property tax revenues.
SUMMARY : Requires General Fund apportionments to the
California Community Colleges (CCC) to be automatically adjusted
for changes in property tax revenues. Specifically, this bill :
1)Requires the annual Budget Act specify the total local
property tax revenue, as defined, for CCC districts upon which
the General Fund appropriation for CCC districts is based.
2)Requires the CCC Chancellor to certify to the State Controller
by December 31 of each year, the actual property tax revenue
for the prior year based on information reported on each CCC
district's Annual Financial Budget Report.
3)Requires, if the total amount of local revenue identified in
the annual Budget Act is greater than the amount of local
revenue identified and reported by the CCC Chancellor, the
State Controller, at the time of the next general
apportionment certification by the Chancellor, to transfer the
deficient amount from the General Fund to the State School
Fund for the CCC.
4)Requires, if the total amount of local revenues identified in
the annual Budget Act is less than the amount of local
revenues identified and reported by the CCC Chancellor, the
State Controller, at the time of the next general
apportionment certification by the Chancellor, to transfer the
excess amount from the State School Fund for the CCC to the
General Fund.
EXISTING LAW provides that general fund apportionments to K-12
school districts automatically adjust for changes in local
property tax revenues. Current law does not provide for a
similar adjustment for CCC districts.
FISCAL EFFECT : Unknown but potentially significant.
AB 283
Page 2
COMMENTS : Background on CCC budgeting . In developing the
annual CCC budget, the state must estimate how much local
property tax and student fee revenue will be available to the
CCC. If the systemwide level of local property tax and fee
revenue turns out to be lower than budgeted, this shortfall is
proportionally spread across all CCC districts. In some years,
legislation has been passed to augment General Fund support to
CCCs in order to make up for this shortfall. In other years,
CCCs were required to absorb the shortfall. While CCC funding
is not automatically "backfilled" for non-received local
revenue, state aid to CCC is also not automatically reduced when
local revenues exceed estimates.
Background on property tax shortfalls . As a result of
legislation that responded to the court ruling in Serrano v.
Priest, current law provides for K-12 school districts to be
automatically compensated with state funding when property tax
revenues fall short of expectations relied upon for the state
budget act. Unlike K-12 school districts, CCC does not have a
mechanism for the automatic backfilling of property taxes not
received. As noted above, in years where property tax revenues
are less than estimated, a direct appropriation is the means for
adjustment.
Purpose of this bill . According to the author, "Community
college districts should have the same level of protection
against fiscal uncertainty and financial loss as K-12 school
districts. The current lack of protection diminishes colleges'
ability to adequately meet the educational needs of their
students and communities."
Prior legislation . AB 2591 (Furutani) of 2012, which was held
in the Assembly Appropriations Committee, was almost identical
to this bill. Several bills have been introduced over the past
decade to address some aspect of this issue; all have failed.
REGISTERED SUPPORT / OPPOSITION :
Support
California Community Colleges
California Federation of Teachers
California School Employees Association, AFL-CIO
Community College League of California
Faculty Association of California Community Colleges
AB 283
Page 3
Kern Community College School District
Los Angeles Community College School District
Mt. San Jacinto Community College School District
Peralta Community College School District
Rio Hondo Community College School District
San Diego Community College School District
West Kern Community College School District
Yosemite Community College School District
Yuba City Community College School District
Opposition
None on file.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960