Amended in Assembly April 10, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1186

Introduced by Assembly Member Bonilla

February 22, 2013

An act to amend Section 42605 of the Education Code, relating to school finance.

LEGISLATIVE COUNSEL’S DIGEST

AB 1186, as amended, Bonilla. School finance: categorical programs.

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 school districts, 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 local educational agency to report expenditures of these funds to the State Department of Education.

This bill would require the Superintendent 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, through the 2019-20 fiscal year. The bill would authorize school districts, for each fiscal year from the 2013-14 fiscal year to the 2019-20 fiscal year, inclusive, to use these funds for any educational purpose, with specified exceptions and to the extent permitted by federal law, if at least begin delete 7% end delete begin insert 9% end insert of those funds are used for purposes of professional development for certificated and administrative employees to implement the common core academic content standards, begin insert purchasing technology for the purpose of implementing state assessments aligned with the common core academic content standards, end insert or implementation of programs that integrate science, technology, engineering, and math, as appropriate for pupils in grades 7 to 12, inclusive, or a combination of those purposes. The bill would, commencing with the 2013-14 fiscal year, require these provisions to be inoperative if funding for the specified categorical programs is not increased by begin delete 15% end delete begin insert 18% end insert from that funding for the prior fiscal year or if a local control funding formula for kindergarten and grades 1 to 12, inclusive, is enacted during the 2013-14 legislative session. By extending the period of time that a local educational agency is required to report expenditures of funds received pursuant to this provision to the department, the bill would impose a state-mandated local program.

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), for the 2008-09 fiscal
year to the 2019-20 fiscal year, inclusive, 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 if, for each fiscal year from the 2013-14
fiscal year to the 2019-20 fiscal year, inclusive, the recipient uses
at least begin delete 7 end delete begin insert 9 end insert percent of the total amount of funds received pursuant
to subdivision (b) for begin delete either, end delete begin insert any, end insert or a combination, of the following
purposes:

(A) Professional development for certificated and administrative
employees to implement the common core academic content
standards established pursuant to Section 60605.8.

begin insert

(B) Purchasing technology for the purpose of implementing
state assessments aligned with the common core academic content
standards.

end insert begin delete

(B)

end delete

begin insert (C) end insert  Implementation of programs that integrate science,
technology, engineering, and mathematics, as appropriate for pupils
in grades 7 to 12, inclusive.

(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) For the 2009-10 fiscal year to the 2014-15 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).

(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), for the 2008-09 fiscal
year to the 2019-20 fiscal year, inclusive, 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), for the 2008-09 fiscal year
to the 2019-20 fiscal year, inclusive, 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), for the 2008-09 fiscal year
to the 2019-20 fiscal year, inclusive, 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) Using the Standardized Account Code Structure reporting
process, a local educational agency shall report expenditures of
funds pursuant to the authority of this section by using the
appropriate function codes to indicate the activities for which these
funds are expended. The department shall collect this information
and provide it 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 until, and including, April 15,
2021.

(d) For the 2008-09 fiscal year to the 2019-20 fiscal year,
inclusive, 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
students 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.

(g) (1) Commencing with the 2013-14 fiscal year, this section
shall be inoperative if either of the following apply:

(A) The amounts provided for the items enumerated in paragraph
(2) of subdivision (a) for the 2013-14 fiscal year are increased by
less than begin delete 15 end delete begin insert 18 end insert percent over the amount provided for those items
in the 2012-13 fiscal year.

(B) A local control funding formula for kindergarten and grades
1 to 12, inclusive, is enacted during the 2013-14 legislative session.

(2) If the department determines that this subdivision applies,
it shall promptly display that fact prominently on the department’s
Internet Web site.

SEC. 2.  

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.