BILL ANALYSIS Ó
AB 948
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 948 (Olsen)
As Amended August 19, 2014
Majority vote
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|ASSEMBLY: |75-1 |(May 29, 2013) |SENATE: |33-0 |(August 21, |
| | | | | |2014) |
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Original Committee Reference: ED.
SUMMARY : Expands eligibility and requires charter schools
participating in the Charter School Facility Grant Program
(CSFGP) to comply with the audit guide. 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 School Finance Authority (CSFA)
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)Requires a charter school that receives CSFGP funds shall be
subject to audits conducted pursuant to the audit guide.
The Senate amendments make minor, technical corrections to
update changes made in the law through the 2013-14 Budget Act.
FISCAL EFFECT : According to the Senate Appropriations
Committee, by expanding CSFGP eligibility and use of funding,
this bill will result in a loss of annual states savings in the
millions of dollars. The exact amount will be determined by the
CSFGP balance each year.
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
AB 948
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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.
The program was administered by the California Department of
Education (CDE) until fiscal year 2013-14, when it was
transferred to the CSFA within the State Treasurer's Office.
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
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.
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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 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 program has
not fully expended its appropriation. This bill will increase
the number of charters eligible for funds and decrease savings
to the program.
Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087
FN: 0004887