BILL ANALYSIS Ó
AB 948
Page 1
ASSEMBLY THIRD READING
AB 948 (Olsen)
As Amended May 24, 2013
Majority vote
EDUCATION 6-0 APPROPRIATIONS 17-0
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|Ayes:|Buchanan, Olsen, Campos, |Ayes:|Gatto, Harkey, Bigelow, |
| |Chávez, Nazarian, | |Bocanegra, Bradford, Ian |
| |Williams | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Hall, Ammiano, Linder, |
| | | |Pan, Quirk, Wagner, Weber |
| | | | |
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SUMMARY : Expands eligibility and makes other changes to the
Charter School Facility Grant Program (CSFGP). Specifically,
this bill :
1)Specifies that in any year in which additional funds remain
after state and federal funds have been allocated to eligible
applicants, the California Department of Education (CDE) shall
expand eligibility by reducing the free and reduced-price
meals threshold one percentage point at a time, but in no case
below 60%, for charter schools that meet eligibility based on
the school's enrollment of pupils that are eligible for free
and reduced-price meals.
2)Deletes an obsolete provision requiring the CDE to submit a
report to the Legislature.
3)Deletes the provision expressing the intent of the Legislature
that not less than $18 million annually be appropriated for
the grant program.
4)Specifies that a charter school that receives CSFGP funds
shall be subject to audits conducted pursuant to the audit
guide.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, there is likely to be a potential loss of General
Fund/Proposition 98 savings over the next two fiscal years,
likely between $9 million and $20 million. There is also
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potential increased General Fund/Proposition 98 cost pressure,
likely in the hundreds and thousands to low millions, to
increase funding for the CSFGP.
COMMENTS : The CSFGP was established by SB 740 (O'Connell),
Chapter 892, Statutes of 2001, to provide charter schools
serving low-income areas with assistance in rent and lease
payments. Eligible charter schools may receive up to $750 per
unit of average daily attendance (ADA), but may not receive more
than 75% of the school's annual rent or lease costs. If the
program is oversubscribed, the funds would be distributed on a
pro-rata basis.
Eligibility is limited to:
1)A charter school physically located in the attendance area of
a public school with at least 70% of its students eligible for
free or reduced-price meals, and the school gives preference
in admissions to pupils who are currently enrolled in that
public elementary school and to pupils who reside in the
attendance area where the charter school is located; or,
2)A charter school in which 70% or more of its pupil enrollment
is eligible for free or reduced- price meals.
According to the CDE, 60% of the charter schools that received
funds in 2011-12 were eligible based on the charter school
meeting the 70% threshold, while 40% of the charter schools
funded were eligible based on the enrollment of the public
school in the attendance area. Funds may be used for costs
associated with facilities rents and leases, but may also
include remodeling, deferred maintenance, initially installing
or extending service systems and other built-in equipment, and
improving sites.
The enacting legislation stated the Legislature's intent to
appropriate $10 million for the program for the 2001-02,
2002-03, and 2003-04 fiscal years (FY). Funds for this program
have increased substantially over time, with the bulk of the
funding coming from the transfer of funds from the phase out of
the Year-Round Operational Grant Program. SB 658 (Romero),
Chapter 271, Statutes of 2008, required all funds appropriated
for the Year-Round School Grant Program at the FY 2007-08 level,
which, at the time, was $97 million, to be transferred to the
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CSFGP at a rate of 20% each year. The FY 2009-10 budget reduced
allocations to categorical programs, including this program.
The program received $92 million in FY 2012-13.
Up until FY 2010-11, the CSFGP was a reimbursement-based
program. The FY 2010-11 budget contained language authorizing
charters to receive grants at the beginning of the fiscal year
based on prior year ADA and estimated costs.
This bill expands eligibility for charter schools that meet
eligibility based on their enrollment of pupils that are
eligible for the free and reduced-priced meal program by
lowering the 70% threshold by one percentage at a time, but not
lower than 60% of kids eligible for free and reduced-price
meals, if funds are available after all applicants that meet the
70% threshold are funded. This bill also deletes obsolete
language and requires the CSFGP funds to be subject to audit
through the audit guide.
According to the CDE, grant requests have increased since the
program was changed to a grant program instead of a
reimbursement program. In 2011-12, the CDE received 389 new
applications totaling $58 million in requests. The 2012-13
budget allocated $92 million for this program.
The Governor's FY 2013-14 budget proposes to transfer the
administration of the program from the CDE to the California
School Finance Authority under the State Treasurer's office.
The Governor proposes to fund nonclassroom-base charter school
facilities, but only the portions that are used to provide
direct instruction and instructional support. The Governor's
proposal also allows charter schools that receive district or
county office of education (COE) facilities to receive funds for
the portions of their facilities that are not existing district
or COE facilities or reasonably equivalent facilities received
from their chartering authority. The Governor's proposal moves,
from October 1 to August 31 or no later than 30 days after
enactment of the Budget Act, by which grant funds must be
allocated to charter schools. The Governor's proposal
incorporates the funds in the audit guide.
Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087
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