BILL ANALYSIS                                                                                                                                                                                                    Ó






                          SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                            2013-2014 Regular Session
                                        

          BILL NO:       SB 41
          AUTHOR:        Wright
          INTRODUCED:    December 11, 2012
          FISCAL COMM:   No                 HEARING DATE:    February  
          27, 2013
          URGENCY:       Yes                CONSULTANT:       Daniel  
          Alvarez

           SUBJECT  :  School district reorganization: base revenue  
          limit: Wiseburn Unified 
                    School District.
          
           SUMMARY  

          This bill, an urgency measure, addresses issues raised by  
          the Governor in his signing message of SB 477 (Chapter 730,  
          Statutes of 2012, Wright) to correct the revenue limit  
          calculation.  

          SB 477, statutes of 2012, related to the allocation and  
          repayment of existing bond indebtedness, the methodology for  
          determining school district debt capacity, and the  
          methodology for calculating a blended revenue limit arising  
          from the creation of the Wiseburn Unified School District  
          (WUSD) by unifying (reorganizing) the Wiseburn School  
          District (WSD, grades K-8) and the Centinela Valley Union  
          High School District (CVUHSD), as specified. 

          Under SB 477, a special revenue limit calculation reflecting  
          the unification of the Wiseburn School District was created.  
          However, in light of the governor's signing message the  
          author intends to strike out the provision of law that  
          allows for the creation of a special revenue limit.  

           BACKGROUND  

          Current law provides for a county committee on school  
          district organization in each county (county committee) to  
          consider locally developed reorganization petitions to  
          transfer territory among districts; unify, merge or create  
          new districts or revise the boundaries of trustee areas.  




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          Proposals for transfer of territory may be decided by the  
          county committee in a public hearing, although such  
          decisions to transfer more than 10% of a district's  
          territory must be ratified by a vote of the people in the  
          affected districts. The decisions of the county committee  
          may be appealed to the State Board of Education (SBE) for  
          specified reasons. 

          When the reorganization proposal involves more than a  
          transfer of territory, the county committee holds a public  
          hearing and forwards the proposal, along with the  
          committee's recommendation, to the SBE.  Current law  
          provides that if the SBE approves a proposal for  
          reorganization then the proposal is returned to the County 


          for approval of a vote of the people in the territory being  
          reorganized. 
          Current law defines school district reorganization as any of  
          the following: 

          1)   Dissolving two or more existing school districts of the  
               same kind and forming one or more new school districts  
               of that same kind from the entire territory of the  
               original districts. 

          2)   Forming one or more new school districts of the same  
               kind from all or parts of one or more existing school  
               districts of that same kind. 

          3)   Unifying school districts, including the consolidation  
               of all or part of one or more high school districts  
               with all or part of one or more component school  
               districts into one or more new unified school  
               districts. 

          4)   De-unifying a school district, including the conversion  
               of all or part of a unified school district into one or  
               more new high school districts, each with two or more  
               new component districts. 

          Furthermore, current law provides that the State Department  
          of Education shall use information provided by the county  
          superintendent of schools in each county that has a school  
          district affected by an action to unify to compute the base  
          revenue limit for a newly organized school district, as  




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          specified. 
          (Education Code § 35500 et. seq.)

           ANALYSIS
           
          This bill, an urgency measure, strikes the provision of law  
          that allows for the creation of a blended revenue limit  
          arising from the creation of the Wiseburn Unified School  
          District (WUSD) by unifying (reorganizing) the Wiseburn  
          School District (WSD, grades K-8) and the Centinela Valley  
          Union High School District (CVUHSD), as specified. 

           STAFF COMMENTS  

           1)   Need for the bill  .   According to the author's office,  
               this measure is needed to immediately address the issue  
               raised in Governor Brown's signing message for SB 477.   
               The issue was that SB 477 created a special revenue  
               limit calculation for the unification of the Wiseburn  
               School District. The governor signed the legislation  
               with the understanding that the special revenue limit  
               section would be repealed and the Wiseburn School  
               District unification calculated revenue limit would be  
               done in the same manner as all other school district  
               unifications.  The urgency of the measure is to meet  
               the May 2013, State Board of Education (SBE) action  
               time frame.

           2)   Wiseburn Unification Status  .  The school district is  
               working with the State Department of Education to  
               schedule a unification hearing at the State Board of  
               Education (SBE).  The goal is to have the SBE approval  
               at the May 2013 SBE meeting and an election at the  
               scheduled local November 2013 election. This would  
               enable the district to start operation as a unified  
               school district on July 1, 2014. 

           3)   What is a revenue limit?   The revenue limit is the  
               general purpose money school districts receive for each  
               student.  Established in law in 1972, the per student  
               average daily attendance (ADA) revenue limit varies  
               slightly between districts by size and type of district  
               (for example, there are three types of school districts  
               - elementary, unified, and high school - with three  
               revenue limit bands that takes into  account the size  
               of the district).  The district revenue limit income is  




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               a combination of local property taxes and state general  
               fund support.  Any increase in local property taxes is  
               offset by a reduction in state funds (except for basic  
               aid districts).  In 2011, the estimated average  
               "undeficited" revenue limit was $6,247 / ADA for an  
               elementary school district, $7,504 / ADA for a high  
               school district, and $6,536 / ADA for a unified school  
               district.
                
                ADA is the workload standard for California public  
               education.  One ADA is based on one student attending  
               school for a minimum number of minutes for 180 school  
               days.  The minute requirement varies for specific types  
               of students, generally: kindergarten - 180 minutes,  
               grades 1 through 3 - 230 minutes, and grades 4 through  
               12 - 240 minutes of instruction.

           SUPPORT  

          Wiseburn School District

           OPPOSITION

           None on file.