BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-14 Regular Session
BILL NO: AB 948
AUTHOR: Olsen
AMENDED: May 24, 2013
FISCAL COMM: Yes HEARING DATE: June 26, 2013
URGENCY: No CONSULTANT:Lenin Del Castillo
SUBJECT : Charter School Facility Grant Program.
SUMMARY
This bill expands eligibility for the Charter School Facility
Grant Program in any year in which additional funds remain
after state and federal funds have been allocated by reducing
the free and reduced-price meals threshold one percentage
point at a time, from 70 percent to 60 percent.
BACKGROUND
Existing law, the Charter Schools Act of 1992, provides for
the establishment of charter schools in California for the
purpose, among other things, to improve student learning and
expand learning experiences for pupils who are identified as
academically low achieving. A charter school may be
authorized by a school district, a county board of education,
or the State Board of Education, as specified. Some charter
schools are new while others are conversions from existing
schools. A charter school is typically created or organized
by a group of teachers, parents and community leaders,
community-based organizations, or an education management
organization. (Education Code § 47601 et seq.)
Existing law establishes the Charter School Facility Grant
Program which is intended to provide assistance with
facilities rent and lease costs for pupils in charter
schools. Specifically, existing law:
1) Specifies that subject to the annual Budget Act,
eligible schools shall receive an amount up to, but not
more than $750 per unit of average daily attendance
(ADA) to provide an amount up to, but not more than, 75
percent of the charter school's annual facilities rent
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and lease costs. In any fiscal year in which there are
insufficient funds to fully fund the approved amounts,
the Superintendent of Public Instruction shall apportion
the available funds on a pro rata basis.
2) Provides that eligibility is based on the geographic
location of the charter schoolsite, pupil eligibility
for free and reduced price meals, and a preference in
admissions, as appropriate. Eligibility for funding
shall not be limited to the grade level or levels served
by the school whose attendance area is used to determine
eligibility.
3) Provides that charter schoolsites are eligible for
funding if either of the following conditions are met:
a) The charter schoolsite is physically located
in the attendance area of a public elementary
school in which 70 percent or more of the pupil
enrollment is eligible for free or reduced price
meals and the schoolsite gives a preference in
admissions to pupils who are currently enrolled in
that public elementary school and to pupils who
reside in the elementary school attendance area
where the charter schoolsite is located.
b) Seventy percent or more of the pupil
enrollment at the charter schoolsite is eligible
for free or reduced price meals.
4) Provides that funding shall not be apportioned for any
of the following:
a) Units of average daily attendance (ADA)
generated through nonclassroom-based instruction,
as specified.
b) Charter schools occupying existing school
district or county office of education facilities.
c) Charter schools receiving reasonably
equivalent facilities from their chartering
authority, as specified.
5) Provides that funding shall be used for costs associated
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with facilities rents and leases, as specified, and may
also be used for costs associated with remodeling of a
building, deferred maintenance, initially installing or
extending service systems and other built-in equipment,
and improving sites.
(Education Code § 47614.5)
ANALYSIS
This bill :
1) Provides that in any year in which additional funds
remain after state and federal funds have been allocated
to applicants that meet the program's existing
eligibility criteria, the department shall expand
eligibility to additional schools that are eligible by
reducing the free and reduced-price meals threshold one
percentage point at a time, but in no case below 60
percent.
2) Eliminates the requirements for the State Department of
Education to report to the Legislature on the number of
charter schools that have participated in the grant
program pursuant to the expanded eligibility, as
specified, and to provide recommendations and
suggestions on improving the grant program.
3) Eliminates legislative intent language specifying that
not less than eighteen million dollars annually be
appropriated for purposes of the grant program on the
same basis as other elementary and secondary education
categorical programs.
4) Provides that a charter school shall be subject to
audits for purposes of this program.
STAFF COMMENTS
1) Need for the bill : According to the author's office, AB
948 would expand the universe of poor students who would
be able to attend a school in an educationally
appropriate facility and also remove a contentious issue
between charter schools and their authorizers by
reducing the need for charter schools to seek a
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Proposition 39 facility from its authorizing school
district. The sponsor of the bill, the California
Charter Schools Association Advocates, indicates that
when the program was first enacted, funding for the
program was nominal so eligibility was strictly limited
to an attendance area in which 70% or more of the
student population is eligible for free or reduced
lunch. This equates to a substantial number of poor
children who the program seeks to benefit are shut out
of eligibility for rent and lease support. AB 948 would
allow schools with under 70 percent of their students
eligible for free and reduced-price meals to apply for
program funds as long as there are funds available.
2) Lowering the free and reduced-price meal threshold .
According to the author's office, when additional
funding was approved for the Charter School Facility
Grant Program in 2008, "it was anticipated that at some
point, it would be necessary to revise the eligibility
requirements (while protecting the program's core
objective to serve low-income neighborhoods) and the
permissible expenses in order to align with the
funding." This bill expands program eligibility to
include schools in which less than 70 percent of its
enrollment (but in no case below 60 percent) is eligible
for free and reduced-price meals.
Funding for the Charter School Facility Grant Program
has increased due to the requirement that funding for
the Year Round School Grant Program be phased out and
transferred to the Charter School Facility Grant Program
over a five-year period (20 percent each year) pursuant
to Chapter 274, Statutes of 2008 (SB 658, Romero). The
last transfer was made as part of the 2012 Budget Act,
resulting in a program total of $92 million Proposition
98 General Fund. However, the program has not been able
to fully expend its entire appropriation and typically
experiences savings each year. For the 2011-12 fiscal
year, the State Department of Education reported
approximately $13.9 million in savings. These funds,
along with other Proposition 98 General Fund savings,
are required by law to be reappropriated for other K-14
educational purposes each year.
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By lowering the free and reduced-price meal threshold to
determine eligibility, this bill would allow additional
schools to receive grant funding, thereby reducing the
level of savings that the program would have otherwise
incurred. This would also reduce the amount of
Proposition 98 savings that the Legislature may utilize
for other K-14 educational purposes. However, AB 948
would continue to provide support for charter schools
serving low-income areas, consistent with the original
intent of the program. There would be no assurance that
the savings would be reappropriated for low-income or
needy students as part of the budget process. Requiring
at least 60 percent of enrollment to be eligible for
free and reduced-price meals appears to be a reasonable
threshold, especially when considering that as part of
the recent budget compromise that the Legislature
reached with the Governor on the Local Control Funding
Formula, school districts may qualify for additional
concentration funding if 55 percent of their students
are low income and English learners.
3) Proposed 2013 budget . This bill contains chaptering
issues with AB 86 and
SB 81, the education omnibus trailer bills regarding the
proposed 2013-14 budget. These bills transfer the
administration of the Charter School Facility Grant
Program from the State Department of Education to the
California School Finance Authority. The 2013 budget
bill includes $92 million Proposition 98 General Fund
for the program.
4) Related and prior legislation :
SB 645 (Simitian, 2011) would have created charter
school accountability measures for renewal and expanded
the Charter School Facility Grant Program to include
schools in which less than 70 percent of its enrollment
is eligible for free and reduced-price meals. This bill
was held in the Assembly Appropriations Committee
suspense file in 2011.
SUPPORT
California Charter Schools Association Advocates
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OPPOSITION
None on file.