BILL NUMBER: AB 1297 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Achadjian
FEBRUARY 27, 2015
An act to amend Section 42238.02 of the Education Code, relating
to school finance.
LEGISLATIVE COUNSEL'S DIGEST
AB 1297, as introduced, Achadjian. School finance: local control
funding formula.
Existing law establishes a public school financing system that
requires state funding for county superintendents of schools, school
districts, and charter schools to be calculated pursuant to a local
control funding formula, as specified.
This bill would make nonsubstantive changes to that provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 42238.02 of the Education Code is amended to
read:
42238.02. (a) The amount computed pursuant to this section shall
be known as the school district and charter school local control
funding formula.
(b) (1) For purposes of this section "unduplicated pupil" means a
pupil enrolled in a school district or a charter school who is either
classified as an English learner, eligible for a free or
reduced-price meal, or is a foster youth. A pupil shall be counted
only once for purposes of this section if any of the following apply:
(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
(B) The pupil is classified as an English learner and is a foster
youth.
(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.
(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.
(2) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a school
district or charter school shall annually submit its enrolled free
and reduced-price meal eligibility, foster youth, and English learner
pupil-level records for enrolled pupils to the Superintendent using
the California Longitudinal Pupil Achievement Data System.
(3) (A) Commencing with the 2013-14 fiscal year, a county office
of education shall review and validate certified aggregate English
learner, foster youth, and free or reduced-price meal eligible pupil
data for school districts and charter schools under its jurisdiction
to ensure the data is reported accurately. The Superintendent shall
provide each county office of education with appropriate access to
school district and charter school data reports in the California
Longitudinal Pupil Achievement Data System for purposes of ensuring
data reporting accuracy.
(B) The Controller shall include the instructions necessary to
enforce paragraph (2) in the audit guide required by Section 14502.1.
The instructions shall include, but are not necessarily limited to,
procedures for determining if the English learner, foster youth, and
free or reduced-price meal eligible pupil counts are consistent with
the school district's or charter school's English learner, foster
youth, and free or reduced-price meal eligible pupil records.
(4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal Pupil
Achievement Data System. Under timeframes and procedures established
by the Superintendent, school districts and charter schools may
review and revise their submitted data on English learner, foster
youth, and free or reduced-price meal eligible pupil counts to ensure
the accuracy of data reflected in the California Longitudinal Pupil
Achievement Data System.
(5) The Superintendent shall annually compute the percentage of
unduplicated pupils for each school district and charter school by
dividing the enrollment of unduplicated pupils in a school district
or charter school by the total enrollment in that school district or
charter school pursuant to all of the following:
(A) For the 2013-14 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 fiscal year by the sum of the total pupil
enrollment for the 2013-14 fiscal year.
(B) For the 2014-15 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
total pupil enrollment for the 2013-14 and 2014-15 fiscal years.
(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of unduplicated pupils for the current fiscal year and
the two prior fiscal years by the sum of the total pupil enrollment
for the current fiscal year and the two prior fiscal years.
(D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a school
district's or charter school's enrollment of unduplicated pupils and
total pupil enrollment in the 2014-15 fiscal year instead of the
enrollment of unduplicated pupils and total pupil enrollment in the
2013-14 fiscal year if doing so would yield an overall greater
percentage of unduplicated pupils.
(ii) It is the intent of the Legislature to review each school
district and charter school's enrollment of unduplicated pupils for
the 2013-14 and 2014-15 fiscal years and provide one-time funding, if
necessary, for a school district or charter school with higher
enrollment of unduplicated pupils in the 2014-15 fiscal year as
compared to the 2013-14 fiscal year.
(6) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This paragraph does not apply to a change that is the result of an
audit that has been appealed pursuant to Section 41344.
(c) Commencing with the 2013-14 fiscal year and each fiscal year
thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.
(d) The Superintendent shall compute a grade span adjusted base
grant equal to the total of the following amounts:
(1) For the 2013-14 fiscal year, a base grant of:
(A) Six thousand eight hundred forty-five dollars ($6,845) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.
(B) Six thousand nine hundred forty-seven dollars ($6,947) for
average daily attendance in grades 4 to 6, inclusive.
(C) Seven thousand one hundred fifty-four dollars ($7,154) for
average daily attendance in grades 7 and 8.
(D) Eight thousand two hundred eighty-nine dollars ($8,289) for
average daily attendance in grades 9 to 12, inclusive.
(2) In each year the grade span adjusted base grants in paragraph
(1) shall be adjusted by the percentage change in the annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month period
ending in the third quarter of the prior fiscal year. This percentage
change shall be determined using the latest data available as of May
10 of the preceding fiscal year compared with the annual average
value of the same deflator for the 12-month period ending in the
third quarter of the second preceding fiscal year, using the latest
data available as of May 10 of the preceding fiscal year, as reported
by the Department of Finance.
(3) (A) The Superintendent shall compute an additional adjustment
to the kindergarten and grades 1 to 3, inclusive, base grant as
adjusted for inflation pursuant to paragraph (2) equal to 10.4
percent. The additional grant shall be calculated by multiplying the
kindergarten and grades 1 to 3, inclusive, base grant, as adjusted by
paragraph (2), by 10.4 percent.
(B) Until paragraph (4) of subdivision (b) of Section 42238.03 is
effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an average
class enrollment of not more than 24 pupils for each schoolsite in
kindergarten and grades 1 to 3, inclusive, unless a collectively
bargained alternative annual average class enrollment for each
schoolsite in those grades is agreed to by the school district,
pursuant to the following calculation:
(i) Determine a school district's average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, in the
prior year. For the 2013-14 fiscal year, this amount shall be the
average class enrollment for each schoolsite for kindergarten and
grades 1 to 3, inclusive, in the 2012-13 fiscal year.
(ii) Determine a school district's proportion of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.
(iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.
(iv) Determine the difference between the amount computed pursuant
to clause (i) and an average class enrollment of not more than 24
pupils.
(v) Calculate a current year average class enrollment adjustment
for each schoolsite for kindergarten and grades 1 to 3, inclusive,
equal to the adjustment calculated in clause (iv) multiplied by the
percentage determined pursuant to clause (iii).
(C) School districts that have an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of 24
pupils or less for each schoolsite in the 2012-13 fiscal year, shall
be exempt from the requirements of subparagraph (B) so long as the
school district continues to maintain an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
not more than 24 pupils, unless a collectively bargained alternative
ratio is agreed to by the school district.
(D) Upon full implementation of the local control funding formula,
as a condition of the receipt of funds in this paragraph, all school
districts shall maintain an average class enrollment for each
schoolsite for kindergarten and grades 1 to 3, inclusive, of not more
than 24 pupils for each schoolsite in kindergarten and grades 1 to
3, inclusive, unless a collectively bargained alternative ratio is
agreed to by the school district.
(E) The average class enrollment requirement for each schoolsite
for kindergarten and grades 1 to 3, inclusive, established pursuant
to this paragraph shall not be subject to waiver by the state board
pursuant to Section 33050 or by the Superintendent.
(F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, exceeds 24 pupils, or an alternative average class
enrollment for each schoolsite pursuant to a collectively bargained
alternative ratio. The procedures for determining average class
enrollment for each schoolsite shall include criteria for employing
sampling.
(4) The Superintendent shall compute an additional adjustment to
the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.6 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6
percent.
(e) The Superintendent shall compute a supplemental grant add-on
equal to 20 percent of the base grants as specified in subparagraphs
(A) to (D), inclusive, of paragraph (1) of subdivision (d), as
adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for
each school district's or charter school's percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b). The supplemental grant shall be calculated by
multiplying the base grants as specified in subparagraphs (A) to (D),
inclusive, of paragraph (1), as adjusted by paragraphs (2) to (4),
inclusive, of subdivision (d), by 20 percent and by the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in that school district or charter school. The
supplemental grant shall be expended in accordance with the
regulations adopted pursuant to Section 42238.07.
(f) (1) The Superintendent shall compute a concentration grant
add-on equal to 50 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district's or charter school's percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district's or
charter school's total enrollment. The concentration grant shall be
calculated by multiplying the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), by 50 percent and by the percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess of
55 percent of the total enrollment in that school district or charter
school.
(2) (A) For a charter school physically located in only one school
district, the percentage of unduplicated pupils calculated pursuant
to paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district in
which the charter school is physically located. For a charter school
physically located in more than one school district, the charter
school's percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed that of the school
district with the highest percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess of
55 percent of the school districts in which the charter school has a
school facility. The concentration grant shall be expended in
accordance with the regulations adopted pursuant to Section 42238.07.
(B) For purposes of this paragraph and subparagraph (A) of
paragraph (1) of subdivision (f) of Section 42238.03, a charter
school shall report its physical location to the department under
timeframes established by the department. For a charter school
authorized by a school district, the department shall include the
authorizing school district in the department's determination of
physical location. For a charter school authorized on appeal pursuant
to subdivision (j) of Section 47605, the department shall include
the sponsoring school district in the department's determination of
physical location. The reported physical location of the charter
school shall be considered final as of the second principal
apportionment for that fiscal year. For purposes of this paragraph,
the percentage of unduplicated pupils of the school district
associated with the charter school pursuant to subparagraph (A) shall
be considered final as of the second principal apportionment for
that fiscal year.
(g) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Targeted Instructional Improvement Block Grant program, as set forth
in Article 6 (commencing with Section 41540) of Chapter 3.2, for the
2012-13 fiscal year, as that article read on January 1, 2013. A
school district or charter school shall not receive a total funding
amount from this add-on greater than the total amount of funding
received by the school district or charter school from that program
in the 2012-13 fiscal year. The amount computed pursuant to this
subdivision shall reflect the reduction specified in paragraph (2) of
subdivision (a) of Section 42238.03.
(h) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Home-to-School Transportation program, as set forth in former Article
2 (commencing with Section 39820) of Chapter 1 of Part 23.5, former
Article 10 (commencing with Section 41850) of Chapter 5, and the
Small School District Transportation program, as set forth in former
Article 4.5 (commencing with Section 42290), for the 2012-13 fiscal
year. A school district or charter school shall not receive a total
funding amount from this add-on greater than the total amount
received by the school district or charter school for those programs
in the 2012-13 fiscal year. The amount computed pursuant to this
subdivision shall reflect the reduction specified in paragraph (2) of
subdivision (a) of Section 42238.03.
(i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:
(A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily attendance
computed pursuant to paragraph (2) of subdivision (a) of Section
42238.05 for purposes of the computation specified in subdivision
(d).
(B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.
(2) The amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision (d), as multiplied
by subparagraph (A) or (B) of paragraph (1), as appropriate.
(j) The Superintendent shall adjust the sum of each school
district's or charter school's amount determined in subdivisions (g)
to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:
(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.
(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.
(2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
(4) Prior years' taxes and taxes on the unsecured roll.
(5) Fifty percent of the amount received pursuant to Section
41603.
(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), less any amount received pursuant
to Section 33401 or 33676 of the Health and Safety Code that is used
for land acquisition, facility construction, reconstruction, or
remodeling, or deferred maintenance and that is not an amount
received pursuant to Section 33492.15, or paragraph (4) of
subdivision (a) of Section 33607.5, or Section 33607.7 of the Health
and Safety Code that is allocated exclusively for educational
facilities.
(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
(8) Revenue received pursuant to subparagraph (B) of paragraph (3)
of subdivision (e) of Section 36 of Article XIII of the California
Constitution.
(k) A school district shall annually transfer to each of its
charter schools funding in lieu of property taxes pursuant to Section
47635.
(l) (1) Nothing in this section shall be interpreted to authorize
a school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law pursuant to paragraph (2)
or pursuant to an agreement between the charter school and its
chartering authority.
(2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13 fiscal
year pursuant to paragraph (2) of subdivision (b) of Section 42606,
as that section read on January 1, 2013, may annually redirect for
another purpose a percentage of the amount of the funding received on
behalf of that charter school. The percentage of funding that may be
redirected shall be determined pursuant to the following
computation:
(A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.
(ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.
(iii) Subtract the amount computed pursuant to paragraphs (1) to
(3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision (i) of
Section 42238.02. this section.
(iv) Compute a percentage by dividing the sum of the amounts
computed to clauses (i) and (ii) by the amount computed pursuant to
clause (iii).
(B) Multiply the percentage computed pursuant to subparagraph (A)
by the amount of funding the school district received on behalf of
the charter school in the 2012-13 fiscal year pursuant to paragraph
(2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on January
1, 2013.
(C) The maximum amount that may be redirected shall be the lesser
of the amount of funding the school district received on behalf of
the charter school in the 2012-13 fiscal year pursuant to paragraph
(2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on January
1, 2013, or the amount computed pursuant to subparagraph (B).
(3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide each
affiliated charter school schoolsite with no less than the amount of
funding the schoolsite received pursuant to the charter school block
grant in the 2012-13 fiscal year.
(m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to,
this section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation Code,
shall be made exclusive of the revenue received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
(n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of Chapter
6.1 of Part 28 of Division 4 of Title 2. 4.
(o) A school district that does not receive an apportionment of
state funds pursuant to this section, as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of subparagraph (A) of paragraph (2) of subdivision (e)
of Section 42238.03, shall be considered a "basic aid school district"
or an "excess tax entity."