BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 41
                                                                  Page  1

          Date of Hearing:   March 20, 2013

                          ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                 SB 41 (Wright) - As Introduced:  December 11, 2012

           SENATE VOTE  :   34-0
           
          SUBJECT  :   School district reorganization:  base revenue limit:  
           Wiseburn Unified School District

           SUMMARY  :   Repeals the methodology for creating a blended  
          revenue limit for the newly-created Wiseburn Unified School  
          District.  

           EXISTING LAW  specifies the methodology to be used to create a  
          blended revenue limit for the newly-created Wiseburn Unified  
          School District based on the existing revenue limits for the  
          Wiseburn School District (currently an elementary district) and  
          the Centinela Valley Union High School District (some of whose  
          students will attend the Wiseburn Unified District).

           FISCAL EFFECT  :   This bill is keyed nonfiscal. 

           COMMENTS  :   Last year Senator Wright authored SB 477 (Chapter  
          730, Statutes of 2012) which addressed issues of repayment of  
          bonded indebtedness, distribution of debt capacity, and the  
          establishment of a revenue limit related to the creation of the  
          Wiseburn Unified School District (WUSD).  WUSD consists of all  
          of the territory of the current Wiseburn elementary district,  
          which makes up a portion of the territory of the Centinela  
          Valley Union High School District.  SB 477 required the  
          calculation of a blended revenue limit for the new district  
          using the following methodology:

          1)Multiply the Wiseburn Elementary revenue limit per average  
            daily attendance (ADA) in 2012-13 by nine (for the nine grade  
            levels in the K-8 district).
          2)Multiply the Centinela revenue limit per ADA in 2012-13 by  
            four (for the four grade levels in the 9-12 district).
          3)Add the amount in a) and b).
          4)Divide the amount in c) by 13.

          Governor Brown signed SB 477 with a message that read, in part:









                                                                  SB 41
                                                                  Page  2

               "I am signing Senate Bill 477 with a commitment from  
               the author and the Wiseburn School District to  
               introduce clean-up legislation to correct the revenue  
               limit calculation in the bill?" 

          According to the author's office, repealing the methodology for  
          creating the blended revenue limit is the cleanup requested by  
          the Governor.  With this repeal, the revenue limit of the new  
          district will be calculated in the same manner as for all other  
          district reorganizations.  That methodology is based on:  (1)  
          revenue limits of each of the involved districts, (2) the  
          proportion of ADA that each district will contribute to the new  
          district as determined by the county superintendent of schools,  
          and (3) salary schedule differences between the districts.  The  
          primary difference between the methodology required by SB 477  
          and the methodology required for all other districts under  
          current law is that SB 477 assumes that the Centinela ADA would  
          make up four-thirteenths of the ADA of the new district,  
          whereas the normal methodology requires the county  
          superintendent to determine how much ADA Centinela will  
          contribute to the new district.

          Existing law requires the State Board of Education (SBE) to  
          approve a district reorganization proposal.  The urgency of  
          this bill is to allow the reorganization to be on the SBE's May  
          2013 agenda.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Wiseburn School District
           
            Opposition 
           
          None received

           Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087