Amended in Assembly June 16, 2015

Senate Bill No. 78

Introduced by Committee on Budget and Fiscal Review

January 9, 2015

begin delete An act relating to the Budget Act of 2015. end delete begin insert An act to amend Sections 1240, 1622, 1623, 1624, 35160.5, 35736, 35757, 41203.7, 41320.1, 41329.55, 41341, 41344, 41376, 41376.1, 41544, 42127, 42127.1, 42127.2, 42127.3, 42127.8, 42238.01, 42280, 42282, 42283, 42284, 42285, 42286, 42287, 45037, 46602, 46603, 47630, 47630.5, 47635, 47663, 48310, 48359.5, 52315, 52319, 52327, 52329, 52334, 52335, 52335.12, and 63001 of, to amend the heading of Article 7 (commencing with Section 60117) of Chapter 1 of Part 33 of Division 4 of Title 2 of, to repeal Sections 1242, 1242.5, 2509, 2550, 2550.1, 2550.2, 2550.4, 2550.5, 2550.6, 2550.7, 2551.3, 2557, 2557.5, 2558.1, 2558.3, 2558.4, 2558.45, 2558.46, 2558.5, 2558.6, 14022.5, 33128.2, 35735.3, 41209, 41334, 41338, 41610, 42238.4, 42238.41, 42238.42, 42238.43, 42238.44, 42238.445, 42238.45, 42238.46, 42238.48, 42238.485, 42238.49, 42238.7, 42238.8, 42238.9, 42238.95, 42238.11, 42238.12, 42238.13, 42238.14, 42238.145, 42238.146, 42238.17, 42238.23, 42239, 42240, 42240.1, 42241.3, 42241.7, 42243.7, 42244, 42245, 42281, 42303, 42604, 46201.1, 52324, 52324.5, 52335.1, 52335.2, 52335.3, 52335.4, 52335.5, 52335.6, and 60117 of, to repeal Article 3.5 (commencing with Section 2560) of Chapter 12 of Part 2 of Division 1 of Title 1 of, and to repeal Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title 2 of, the Education Code, relating to education finance, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 78, as amended, Committee on Budget and Fiscal Review. begin delete Budget Act of 2015. end delete begin insert Education finance: local control funding formula. end insert

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(1) Existing law establishes the public school system in this state, and, among other things, provides for the establishment of county superintendents of schools, school districts, and charter schools throughout the state and for their provision of instruction at the public elementary and secondary schools these local educational agencies maintain. Existing law, before July 1, 2013, established a public school financing system that required funding for county superintendents of schools and school districts to be calculated pursuant to a revenue limit, as specified, and required funding for charter schools to be calculated pursuant to a general-purpose entitlement, except as provided, and required the revenue limit and general-purpose entitlement to be composed of, among other things, state aid and certain local revenues. Existing law also establishes various categorical education programs under which funding was provided for specific educational purposes. Existing law, commencing July 1, 2013, revised and recast the provisions related to the public financing system by requiring state funding for county superintendents of schools, school districts, and charter schools that previously received a general-purpose entitlement to be calculated pursuant to a local control funding formula, as specified.

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This bill would, among other things, repeal provisions requiring or authorizing many categorical education programs. The bill would repeal provisions relating to the revenue limit and would replace references to the former review limit and general-purpose entitlement calculations with the references to the current local control funding formula calculation. The bill would, commencing with the 2014-15 fiscal year, revise the authorization for a school participating in a special assistance alternative authorized under the federal National School Lunch Program to establish a base year for purposes of the local control funding formula for determining pupils eligible for free or reduced-price meals, as specified. The bill would require specified information to be included in an alternative household income data collection form for the federal National School Lunch Program for purposes of the local control funding formula. The bill would also change the funding calculations for necessary small schools.

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(2) Existing law requires a county superintendent of schools to annually present a report, on or before August 15, to the governing board of the school district and the Superintendent of Public Instruction regarding the fiscal solvency of a school district with a disapproved budget, qualified interim certification, or a negative interim certification, or that is determined to be in a position of fiscal uncertainty.

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This bill would instead require a county superintendent of schools to present the report on or before September 15.

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(3) Existing law specifies how funds appropriated pursuant to a specified budget item of the Budget Act of 2006 for specified county offices of education for site visits shall be allocated.

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This bill would delete that provision.

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(4) Existing law, on or before July 1 of each fiscal year, requires the county board of education to adopt an annual budget for the budget year and file the budget with the Superintendent of Public Instruction, the county board of supervisors, and the county auditor. Existing law requires the Superintendent to examine the budget, as specified, and, on or before August 15, approve or disapprove the budget, as specified. If the Superintendent disapproves the budget, existing law requires the county superintendent of schools and the county board of education, on or before September 8, to review recommendations of the Superintendent at a regularly scheduled meeting of the county board of education and respond to those recommendations, as specified. Existing law requires the Superintendent to examine a revised budget, as specified, and, on or before October 8, to approve or disapprove the revised budget. If the Superintendent disapproves the budget, existing law requires him or her to call for the formation of a budget review committee, and requires the budget review committee, on or before October 31, to review the proposed budget, as specified. If the budget review committee disapproves the budget of the county office of education, existing law requires the Superintendent to either approve or disapprove the budget, as specified. If the Superintendent disapproves the budget, existing law authorizes the Superintendent or his or her designee to do certain things for the remainder of the year, including, among others, to develop and adopt, in consultation with the county superintendent of schools and the county board of education, on or before November 30, a fiscal plan and budget for the county office of education, as specified.

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This bill would, among other things, extend those dates by one month to September 15, October 8, November 8, November 30, and December 31, respectively.

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(5) Existing law, on or before July 1 of each fiscal year, requires a school district to adopt a budget for the subsequent fiscal year and file the adopted budget with the county superintendent of schools, as specified. Existing law requires the county superintendent of schools to examine the adopted budget, as specified, make certain determinations related to the adopted budget, and, on or before August 15, approve, conditionally approve, or disapprove the adopted budget for each school district, as specified. If the county superintendent of schools conditionally approves or disapproves the budget, existing law requires the governing board of the school district, in conjunction with the county superintendent of schools, on or before September 8, to review and respond to the recommendations of the county superintendent of schools as specified. Existing law requires the county superintendent of schools to examine the revised budget to make certain determinations and, on or before October 8, to approve or disapprove the revised budget, as specified. If the county superintendent of schools disapproves the budget, existing law requires him or her to call for the formation of a budget review committee, and requires the budget review committee, on or before October 31, to review the proposed budget, as specified. If the budget review committee disapproves the budget of the school district, existing law requires the Superintendent of Public Instruction to either approve or disapprove the budget, as specified. If the Superintendent disapproves the budget, existing law requires the county superintendent of schools to do certain things, including, among others, on or before November 30, develop and adopt, in consultation with the governing board of the school district and the Superintendent, a fiscal plan and budget for the school district, as specified.

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This bill would, among other things, extend those dates by one month to September 15, October 8, November 8, November 30, and December 31, respectively.

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(6) This bill would appropriate $5,994,417,000 from the General Fund to the Superintendent of Public Instruction for purposes of allocating those funds to school districts and charter schools pursuant to the local control funding formula for those local educational agencies.

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(7) This bill also would make conforming changes, would correct cross-references, would delete obsolete provisions, and would make other nonsubstantive changes.

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(8) Funds appropriated by this bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.

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(9) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 1240 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

1240.  

The county superintendent of schools shall do all of the
following:

(a) Superintend the schools of his or her county.

(b) Maintain responsibility for the fiscal oversight of each school
district in his or her county pursuant to the authority granted by
this code.

(c) (1) Visit and examine each school in his or her county at
reasonable intervals to observe its operation and to learn of its
problems. He or she annually may present a report of the state of
the schools in his or her county, and of his or her office, including,
but not limited to, his or her observations while visiting the schools,
to the board of education and the board of supervisors of his or
her county.

(2) (A) For fiscal years 2004-05 to 2006-07, inclusive, to the
extent that funds are appropriated for purposes of this paragraph,
the county superintendent, or his or her designee, annually shall
submit a report, at a regularly scheduled November board meeting,
to the governing board of each school district under his or her
jurisdiction, the county board of education of his or her county,
and the board of supervisors of his or her county describing the
state of the schools in the county or of his or her office that are
ranked in deciles 1 to 3, inclusive, of the 2003 base Academic
Performance Index (API), as described in subdivision (b) of Section
17592.70, and shall include, among other things, his or her
observations while visiting the schools and his or her
determinations for each school regarding the status of all of the
circumstances listed in subparagraph begin delete (J) end delete begin insert (I) end insert and teacher
misassignments and teacher vacancies. As a condition for receipt
of funds, the county superintendent, or his or her designee, shall
use a standardized template to report the circumstances listed in
subparagraph begin delete (J) end delete begin insert (I) end insert and teacher misassignments and teacher
vacancies, unless the current annual report being used by the county
superintendent, or his or her designee, already includes those details
for each school.

(B) Commencing with the 2007-08 fiscal year, the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her jurisdiction,
the county board of education of his or her county, and the board
of supervisors of his or her county describing the state of the
schools in the county or of his or her office that are ranked in
deciles 1 to 3, inclusive, of the 2006 base API, pursuant to begin insert former end insert
Section begin delete 52056. end delete begin insert 52056, as that section read on June 30, 2013. end insert The
annual report shall include the determinations for each school made
by the county superintendent, or his or her designee, regarding the
status of all of the circumstances listed in subparagraph begin delete (J) end delete begin insert (I) end insert and
teacher misassignments and teacher vacancies, and the county
superintendent, or his or her designee, shall use a standardized
template to report the circumstances listed in subparagraph begin delete (J) end delete begin insert (I) end insert
and teacher misassignments and teacher vacancies, unless the
current annual report being used by the county superintendent, or
his or her designee, already includes those details with the same
level of specificity that is otherwise required by this subdivision.
For purposes of this section, schools ranked in deciles 1 to 3,
inclusive, on the 2006 base API shall include schools determined
by the department to meet either of the following:

(i) The school meets all of the following criteria:

(I) Does not have a valid base API score for 2006.

(II) Is operating in fiscal year 2007-08 and was operating in
fiscal year 2006-07 during the Standardized Testing and Reporting
(STAR) Program testing period.

(III) Has a valid base API score for 2005 that was ranked in
deciles 1 to 3, inclusive, in that year.

(ii) The school has an estimated base API score for 2006 that
would be in deciles 1 to 3, inclusive.

(C) The department shall estimate an API score for any school
meeting the criteria of subclauses (I) and (II) of clause (i) of
subparagraph (B) and not meeting the criteria of subclause (III)
of clause (i) of subparagraph (B), using available test scores and
weighting or corrective factors it deems appropriate. The
department shall post the API scores on its Internet Web site on
or before May 1.

(D) For purposes of this section, references to schools ranked
in deciles 1 to 3, inclusive, on the 2006 base API shall exclude
schools operated by county offices of education pursuant to Section
56140, as determined by the department.

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(E) In addition to the requirements above, the county
superintendent, or his or her designee, annually shall verify both
of the following:

end delete begin delete end delete begin delete end delete begin delete

(i) That pupils who have not passed the high school exit
examination by the end of grade 12 are informed that they are
entitled to receive intensive instruction and services for up to two
consecutive academic years after completion of grade 12 or until
the pupil has passed both parts of the high school exit examination,
whichever comes first, pursuant to paragraphs (4) and (5) of
subdivision (d) of Section 37254.

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(ii) That pupils who have elected to receive intensive instruction
and services, pursuant to paragraphs (4) and (5) of subdivision (d)
of Section 37254, are being served.

end delete begin delete end delete begin delete

(F)

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begin insert (E) end insert  (i) Commencing with the 2010-11 fiscal year and every
third year thereafter, the Superintendent shall identify a list of
schools ranked in deciles 1 to 3, inclusive, of the API for which
the county superintendent, or his or her designee, annually shall
submit a report, at a regularly scheduled November board meeting,
to the governing board of each school district under his or her
jurisdiction, the county board of education of his or her county,
and the board of supervisors of his or her county that describes the
state of the schools in the county or of his or her office that are
ranked in deciles 1 to 3, inclusive, of the base API as defined in
clause (ii).

(ii) For the 2010-11 fiscal year, the list of schools ranked in
deciles 1 to 3, inclusive, of the base API shall be updated using
the criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the 2009
base API and thereafter shall be updated every third year using
the criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the base
API of the year preceding the third year consistent with clause (i).

(iii) The annual report shall include the determinations for each
school made by the county superintendent, or his or her designee,
regarding the status of all of the circumstances listed in
subparagraph begin delete (J) end delete begin insert (I) end insert and teacher misassignments and teacher
vacancies, and the county superintendent, or his or her designee,
shall use a standardized template to report the circumstances listed
in subparagraph begin delete (J) end delete begin insert (I) end insert and teacher misassignments and teacher
vacancies, unless the current annual report being used by the county
superintendent, or his or her designee, already includes those details
with the same level of specificity that is otherwise required by this
subdivision.

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(G)

end delete

begin insert (F) end insert  The county superintendent of the Counties of Alpine,
Amador, Del Norte, Mariposa, Plumas, and Sierra, and the City
and County of San Francisco shall contract with another county
office of education or an independent auditor to conduct the
required visits and make all reports required by this paragraph.

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(H)

end delete

begin insert (G) end insert  On a quarterly basis, the county superintendent, or his or
her designee, shall report the results of the visits and reviews
conducted that quarter to the governing board of the school district
at a regularly scheduled meeting held in accordance with public
notification requirements. The results of the visits and reviews
shall include the determinations of the county superintendent, or
his or her designee, for each school regarding the status of all of
the circumstances listed in subparagraph begin delete (J) end delete begin insert (I) end insert and teacher
misassignments and teacher vacancies. If the county
superintendent, or his or her designee, conducts no visits or reviews
in a quarter, the quarterly report shall report that fact.

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(I)

end delete

begin insert (H) end insert  The visits made pursuant to this paragraph shall be
conducted at least annually and shall meet the following criteria:

(i) Minimize disruption to the operation of the school.

(ii) Be performed by individuals who meet the requirements of
Section 45125.1.

(iii) Consist of not less than 25 percent unannounced visits in
each county. During unannounced visits in each county, the county
superintendent shall not demand access to documents or specific
school personnel. Unannounced visits shall only be used to observe
the condition of school repair and maintenance, and the sufficiency
of instructional materials, as defined by Section 60119.

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(J)

end delete

begin insert (I) end insert  The priority objective of the visits made pursuant to this
paragraph shall be to determine the status of all of the following
circumstances:

(i) Sufficient textbooks as defined in Section 60119 and as
specified in subdivision (i).

(ii) The condition of a facility that poses an emergency or urgent
threat to the health or safety of pupils or begin delete staff end delete begin insert staff, end insert as described
in school district policy or paragraph (1) of subdivision (c) of
Section 17592.72.

(iii) The accuracy of data reported on the school accountability
report card with respect to the availability of sufficient textbooks
and instructional materials, as defined by Section 60119, and the
safety, cleanliness, and adequacy of school facilities, including
good begin delete repair end delete begin insert repair, end insert as required by Sections 17014, 17032.5,
17070.75, and 17089.

begin delete end delete begin delete

(iv) The extent to which pupils who have not passed the high
school exit examination by the end of grade 12 are informed that
they are entitled to receive intensive instruction and services for
up to two consecutive academic years after completion of grade
12 or until the pupil has passed both parts of the high school exit
examination, whichever comes first, pursuant to paragraphs (4)
and (5) of subdivision (d) of Section 37254.

end delete begin delete end delete begin delete end delete begin delete

(v) The extent to which pupils who have elected to receive
intensive instruction and services, pursuant to paragraphs (4) and
(5) of subdivision (d) of Section 37254, are being served.

end delete begin delete end delete begin delete

(K)

end delete

begin insert (J) end insert  The county superintendent may make the status
determinations described in subparagraph begin delete (J) end delete begin insert (I) end insert during a single
visit or multiple visits. In determining whether to make a single
visit or multiple visits for this purpose, the county superintendent
shall take into consideration factors such as cost-effectiveness,
disruption to the schoolsite, deadlines, and the availability of
qualified reviewers.

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(L)

end delete

begin insert (K) end insert  If the county superintendent determines that the condition
of a facility poses an emergency or urgent threat to the health or
safety of pupils or staff as described in school district policy or
paragraph (1) of subdivision (c) of Section 17592.72, or is not in
good repair, as specified in subdivision (d) of Section 17002 and
required by Sections 17014, 17032.5, 17070.75, and 17089, the
county superintendent, among other things, may do any of the
following:

(i) Return to the school to verify repairs.

(ii) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance if the school district has
not provided evidence of successful repairs within 30 days of the
visit of the county superintendent or, for major projects, has not
provided evidence that the repairs will be conducted in a timely
manner. The report may be provided to the governing board of the
school district. If the report is provided to the school district, it
shall be presented at a regularly scheduled meeting held in
accordance with public notification requirements. The county
superintendent shall post the report on his or her Internet Web site.
The report shall be removed from the Internet Web site when the
county superintendent verifies the repairs have been completed.

(d) Distribute all laws, reports, circulars, instructions, and blanks
that he or she may receive for the use of the school officers.

(e) Annually, on or before begin delete August end delete begin insert September end insert 15, present a report
to the governing board of the school district and the Superintendent
regarding the fiscal solvency of a school district with a disapproved
budget, qualified interim certification, or a negative interim
certification, or that is determined to be in a position of fiscal
uncertainty pursuant to Section 42127.6.

(f) Keep in his or her office the reports of the Superintendent.

(g) Keep a record of his or her official acts, and of all the
proceedings of the county board of education, including a record
of the standing, in each study, of all applicants for certificates who
have been examined, which shall be open to the inspection of an
applicant or his or her authorized agent.

(h) Enforce the course of study.

(i) (1) Enforce the use of state textbooks and instructional
materials and of high school textbooks and instructional materials
regularly adopted by the proper authority in accordance with
Section 51050.

(2) For purposes of this subdivision, sufficient textbooks or
instructional materials has the same meaning as in subdivision (c)
of Section 60119.

(3) (A) Commencing with the 2005-06 school year, if a school
is ranked in any of deciles 1 to 3, inclusive, of the base API, as
specified in paragraph (2) of subdivision (c), and not currently
under review pursuant to a state or federal intervention program,
the county superintendent specifically shall review that school at
least annually as a priority school. A review conducted for purposes
of this paragraph shall be completed by the fourth week of the
school year. For the 2004-05 fiscal year only, the county
superintendent shall make a diligent effort to conduct a visit to
each school pursuant to this paragraph within 120 days of receipt
of funds for this purpose.

(B) In order to facilitate the review of instructional materials
before the fourth week of the school year, the county superintendent
in a county with 200 or more schools that are ranked in any of
deciles 1 to 3, inclusive, of the base API, as specified in paragraph
(2) of subdivision (c), may utilize a combination of visits and
written surveys of teachers for the purpose of determining
sufficiency of textbooks and instructional materials in accordance
with subparagraph (A) of paragraph (1) of subdivision (a) of
Section 60119 and as defined in subdivision (c) of Section 60119.
If a county superintendent elects to conduct written surveys of
teachers, the county superintendent shall visit the schools surveyed
within the same academic year to verify the accuracy of the
information reported on the surveys. If a county superintendent
surveys teachers at a school in which the county superintendent
has found sufficient textbooks and instructional materials for the
previous two consecutive years and determines that the school
does not have sufficient textbooks or instructional materials, the
county superintendent shall within 10 business days provide a copy
of the insufficiency report to the school district as set forth in
paragraph (4).

(C) For purposes of this paragraph, “written surveys” may
include paper and electronic or online surveys.

(4) If the county superintendent of schools determines that a
school does not have sufficient textbooks or instructional materials
in accordance with subparagraph (A) of paragraph (1) of
subdivision (a) of Section 60119 and as defined by subdivision (c)
of Section 60119, the county superintendent shall do all of the
following:

(A) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance.

(B) Provide within five business days of the review, a copy of
the report to the school district, as provided in subdivision (c), or,
if applicable, provide a copy of the report to the school district
within 10 business days pursuant to subparagraph (B) of paragraph
(3).

(C) Provide the school district with the opportunity to remedy
the deficiency. The county superintendent shall ensure remediation
of the deficiency no later than the second month of the school term.

(D) If the deficiency is not remedied as required pursuant to
subparagraph (C), the county superintendent shall request the
department to purchase the textbooks or instructional materials
necessary to comply with the sufficiency requirement of this
subdivision. If the department purchases textbooks or instructional
materials for the school district, the department shall issue a public
statement at the first regularly scheduled meeting of the state board
occurring immediately after the department receives the request
of the county superintendent and that meets the applicable public
notice requirements, indicating that the district superintendent and
the governing board of the school district failed to provide pupils
with sufficient textbooks or instructional materials as required by
this subdivision. Before purchasing the textbooks or instructional
materials, the department shall consult with the school district to
determine which textbooks or instructional materials to purchase.
The amount of funds necessary for the purchase of the textbooks
and materials is a loan to the school district receiving the textbooks
or instructional materials. Unless the school district repays the
amount owed based upon an agreed-upon repayment schedule with
the Superintendent, the Superintendent shall notify the Controller
and the Controller shall deduct an amount equal to the total amount
used to purchase the textbooks and materials from the next
principal apportionment of the school district or from another
apportionment of state funds.

(j) Preserve carefully all reports of school officers and teachers.

(k) Deliver to his or her successor, at the close of his or her
official term, all records, books, documents, and papers belonging
to the office, taking a receipt for them, which shall be filed with
the department.

(l) (1) Submit two reports during the fiscal year to the county
board of education in accordance with the following:

(A) The first report shall cover the financial and budgetary status
of the county office of education for the period ending October
31. The second report shall cover the period ending January 31.
Both reports shall be reviewed by the county board of education
and approved by the county superintendent no later than 45 days
after the close of the period being reported.

(B) As part of each report, the county superintendent shall certify
in writing whether or not the county office of education is able to
meet its financial obligations for the remainder of the fiscal year
and, based on current forecasts, for two subsequent fiscal years.
The certifications shall be classified as positive, qualified, or
negative, pursuant to standards prescribed by the Superintendent,
for the purposes of determining subsequent state agency actions
pursuant to Section 1240.1. For purposes of this subdivision, a
negative certification shall be assigned to a county office of
education that, based upon current projections, will not meet its
financial obligations for the remainder of the fiscal year or for the
subsequent fiscal year. A qualified certification shall be assigned
to a county office of education that may not meet its financial
obligations for the current fiscal year or two subsequent fiscal
years. A positive certification shall be assigned to a county office
of education that will meet its financial obligations for the current
fiscal year and subsequent two fiscal years. In accordance with
those standards, the Superintendent may reclassify a certification.
If a county office of education receives a negative certification,
the Superintendent, or his or her designee, may exercise the
authority set forth in subdivision (c) of Section 1630. Copies of
each certification, and of the report containing that certification,
shall be sent to the Superintendent at the time the certification is
submitted to the county board of education. Copies of each
qualified or negative certification and the report containing that
certification shall be sent to the Controller at the time the
certification is submitted to the county board of education.

(i) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each county office of education budget shall project the
same level of revenue per unit of average daily attendance as it
received in the 2010-11 fiscal year and shall maintain staffing and
program levels commensurate with that level.

(ii) For the 2011-12 fiscal year, the county superintendent shall
not be required to certify in writing whether or not the county
office of education is able to meet its financial obligations for the
two subsequent fiscal years.

(iii) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, the Superintendent, as a condition on approval of a county
office of education budget, shall not require a county office of
education to project a lower level of revenue per unit of average
daily attendance than it received in the 2010-11 fiscal year nor
require the county superintendent to certify in writing whether or
not the county office of education is able to meet its financial
obligations for the two subsequent fiscal years.

(2) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent,
and shall be based on standards and criteria for fiscal stability
adopted by the state board pursuant to Section 33127. The reports
and supporting data shall be made available by the county
superintendent to an interested party upon request.

(3) This subdivision does not preclude the submission of
additional budgetary or financial reports by the county
superintendent to the county board of education or to the
Superintendent.

(4) The county superintendent is not responsible for the fiscal
oversight of the community colleges in the county, however, he
or she may perform financial services on behalf of those
community colleges.

(m) If requested, act as agent for the purchase of supplies for
the city and high school districts of his or her county.

(n) For purposes of Section 44421.5, report to the Commission
on Teacher Credentialing the identity of a certificated person who
knowingly and willingly reports false fiscal expenditure data
relative to the conduct of an educational program. This requirement
applies only if, in the course of his or her normal duties, the county
superintendent discovers information that gives him or her
reasonable cause to believe that false fiscal expenditure data
relative to the conduct of an educational program has been reported.

(o) If any activities authorized pursuant to this section are found
to be a state reimbursable mandate pursuant to Section 6 of Article
XIII B of the California Constitution, funding provided for school
districts and county offices of education pursuant to Sections 2574,
2575, 42238.02, and 42238.03 shall be used to directly offset any
mandated costs.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1242 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

1242.  

(a) Commencing with the 2006-07 fiscal year, funds
appropriated pursuant to Item 6110-266-0001 of Section 2.0 of
Chapter 47 of the Statutes of 2006 to county offices of education
for site visits conducted pursuant to Section 1240, shall be allocated
as follows:

(1) Two thousand five hundred dollars ($2,500) for each
elementary school.

(2) Three thousand five hundred dollars ($3,500) for each middle
or junior high school.

(3) Five thousand dollars ($5,000) for each high school.

(b) In addition to the funds described in subdivision (a), county
offices of education shall receive additional funding for sites whose
enrollment in the prior year is 20 percent greater than the average
enrollment of all sites for the prior year as follows:

(1) Two dollars and fifty cents ($2.50) for each pupil that
exceeds a total elementary school enrollment of 856 pupils.

(2) Three dollars and fifty cents ($3.50) for each pupil that
exceeds a total middle school or junior high school enrollment of
1,427 pupils.

(3) Five dollars ($5.00) for each pupil that exceeds a total high
school enrollment of 2,296 pupils.

(c) County offices of education that are responsible for visiting
more than 150 schoolsites shall receive an additional allocation of
one dollar ($1.00) per pupil for the total prior year enrollment of
all sites visited.

(d) The minimum amount for allocation pursuant to this section
to county offices of education shall be ten thousand dollars
($10,000).

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1242.5 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

1242.5.  

On or before March 31, 2007, the department shall
review the actual costs of 2005-06 fiscal year site visits conducted
pursuant to Section 1240. If the department determines that a
county office of education did not expend the funds allocated for
this purpose during the 2005-06 fiscal year, the amount that
exceeds the amount spent shall revert to the extraordinary cost
pool created by Chapter 710 of the Statutes of 2005 and shall be
available to cover the extraordinary costs incurred by county offices
of education as a result of the reviews conducted pursuant to
Section 1240. Based on a determination by the department and the
Department of Finance that it was necessary for a county office
of education to incur extraordinary costs to conduct the site visits,
funds in the amount necessary to cover these costs shall be
allocated to the county office of education by June 30, 2007.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 1622 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

1622.  

(a) On or before July 1 of each fiscal year, the county
board of education shall adopt an annual budget for the budget
year and shall file the budget with the Superintendent, the county
board of supervisors, and the county auditor. The budget, and
supporting data, shall be maintained and made available for public
review. The budget shall indicate the date, time, and location at
which the county board of education held the public hearing
required under Section 1620. For the 2014-15 fiscal year and each
fiscal year thereafter, the county board of education shall not adopt
a budget before the county board of education adopts a local control
and accountability plan or approves an update to an existing local
control and accountability plan if an existing local control and
accountability plan or update to a local control and accountability
plan is not effective during the budget year. The county board of
education shall not adopt a budget that does not include the
expenditures identified in the local control and accountability plan
and any annual update to the local control and accountability plan
that will be effective for the budget year. Notwithstanding any
other provision of this article, for the 2014-15 fiscal year and each
fiscal year thereafter, the budget shall not be adopted or approved
by the Superintendent before a local control and accountability
plan or update to an existing local control and accountability plan
for the budget year is approved.

(b) (1) The Superintendent shall examine the budget to
determine if it (A) complies with the standards and criteria adopted
by the state board pursuant to Section 33127 for application to
final local educational agency budgets, (B) allows the county office
of education to meet its financial obligations during the fiscal year,
and (C) is consistent with a financial plan that will enable the
county office of education to satisfy its multiyear financial
commitments. In addition, the Superintendent shall identify any
technical corrections to the budget that must be made. On or before
begin delete August end delete begin insert September end insert 15, the Superintendent shall approve or
disapprove the budget and, in the event of a disapproval, transmit
to the county office of education in writing his or her
recommendations regarding revision of the budget and the reasons
for those recommendations.

(2) For the 2014-15 fiscal year and each fiscal year thereafter,
the Superintendent shall disapprove a budget if any of the following
occur:

(A) The Superintendent has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by a county board of education pursuant
to Section 52070.5 that is effective for the budget year.

(B) The Superintendent determines that the budget does not
include the expenditures necessary to implement the local control
and accountability plan or an annual update to the local control
and accountability plan that is effective for that budget year.

(c) In the event of the disapproval of the budget of a county
office of education pursuant to subdivision (b), on or before
begin delete September end delete begin insert October end insert 8, the county superintendent of schools and
the county board of education shall review the recommendations
of the Superintendent at a regularly scheduled meeting of the
county board of education and respond to those recommendations.
That response shall include any revisions to the adopted budget
and other proposed actions to be taken, if any, as a result of those
recommendations.

(d) (1) The Superintendent shall examine the revised budget
as provided in subdivision (c) to determine if it complies with the
standards and criteria adopted by the state board pursuant to Section
33127 for application to final local educational agency budgets
and, begin delete no later than October end delete begin insert on or before November end insert 8, shall approve
or disapprove the revised budget. For the 2014-15 fiscal year and
each fiscal year thereafter, the Superintendent shall disapprove a
revised budget if the Superintendent determines that the revised
budget does not include the expenditures necessary to implement
the local control and accountability plan or an annual update to
the local control and accountability plan approved by the
Superintendent pursuant to Section 52070.5 that is effective for
the budget year. If the Superintendent disapproves the budget, he
or she shall call for the formation of a budget review committee
pursuant to Section 1623.

(2) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if the Superintendent disapproves
the budget for the sole reason that the Superintendent has not
approved a local control and accountability plan or an annual
update to the local control and accountability plan filed by the
county board of education pursuant to Section 52070.5, the
Superintendent shall not call for the formation of a budget review
committee pursuant to Section 1623.

(e) Not later than 45 days after the Governor signs the annual
Budget Act, the county office of education shall make available
for public review any revisions in revenues and expenditures that
it has made to its budget to reflect the funding made available by
that Budget Act.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 1623 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

1623.  

(a) The budget review committee shall be composed of
three persons and shall be selected by the county superintendent
of schools and the county board of education solely from a list of
no fewer than five candidates provided by the begin delete Superintendent of
Public Instruction. end delete begin insert Superintendent. end insert The candidates shall be persons
who have expertise in the management of a school district or
county office of education, including, but not be limited to, the
fiscal and educational aspects of that management.

(b) No later than five working days after the receipt of the
candidate list described in subdivision (a), the county
superintendent of schools and the county board of education shall
select the budget review committee. If the county superintendent
of schools and the county board of education fail to select a
committee within the period of time permitted by this subdivision,
the Superintendent begin delete of Public Instruction end delete instead shall select and
convene the budget review committee no later than 10 working
days after the receipt by the county superintendent of schools and
the county board of education of the candidate list.

(c)  begin delete No later than October 31, end delete begin insert On or before November 30, end insert the
budget review committee shall review the proposed budget of the
county office of education and the underlying fiscal policies of
that county office of education, and shall transmit to the
begin delete Superintendent of Public Instruction, end delete begin insert Superintendent, end insert the county
superintendent of schools, and the county board of education either
of the following:

(1) The recommendation that the budget be approved.

(2) A report disapproving the budget and setting forth
recommendations for revisions to the budget that would enable
the county office of education to meet its financial obligations both
in the budget year and with regard to multiyear financial
commitments.

(d) Upon the request of the budget review committee, the
Superintendent begin delete of Public Instruction end delete may extend the deadline set
forth in subdivision (c) for a period of not more than 15 working
days.

(e) The Superintendent begin delete of Public Instruction end delete shall develop
criteria and procedures governing the performance by budget
review committees of their duties under this section.

(f) The members of the budget review committee shall be
reimbursed for their services and associated expenses while on
official business, at rates established by the begin delete State Board of
Education. end delete begin insert state board. end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 1624 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

1624.  

(a) If the budget review committee established pursuant
to Section 1623 disapproves the budget of the county office of
education, within five working days following the receipt of the
committee’s report, the county superintendent of schools and the
county board of education may submit a response to the
begin delete Superintendent of Public Instruction, end delete begin insert Superintendent, end insert including
any revisions to the adopted budget and any other proposed action
to be taken as a result of the recommendations of the budget review
committee.

(b) Based upon the recommendations of the budget review
committee provided pursuant to subdivision (c) of Section 1623,
and any response provided pursuant to subdivision (a), the
Superintendent begin delete of Public Instruction end delete shall either approve or
disapprove the budget of the county office of education. If the
Superintendent begin delete of Public Instruction end delete disapproves the budget, the
superintendent or his or her designee may do any of the following
for the remainder of the current fiscal year:

(1) On or before begin delete November 30, end delete begin insert December 31, end insert develop and
adopt, in consultation with the county superintendent of schools
and the county board of education, a fiscal plan and budget for the
county office of education that will allow the county office of
education to meet its financial obligations both in the budget year
and with regard to the multiyear financial commitments. The
county board of education and the county superintendent of schools
shall govern the operation of the county office of education for
the budget year in accordance with that fiscal plan and budget.
The deadline set forth in this paragraph shall be modified to reflect
any extension granted under subdivision (d) of Section 1623.

(2) Cancel purchase orders, prohibit the issuance of nonsalary
warrants, and otherwise stay or rescind any action that is
inconsistent with the fiscal plan and budget adopted pursuant to
paragraph (1). The Superintendent begin delete of Public Instruction end delete shall
inform the county board of education and the county superintendent
of schools in writing of his or her justification for any exercise of
authority under this paragraph.

(3) Monitor and review the operation of the county office of
education.

(4) Determine the need for additional staff and may employ, at
county office of education expense, short-term analytical assistance
or expertise to validate financial information if the county does
not have the expertise or staff.

(5) Require the county office of education to encumber all
contracts and other obligations, to prepare appropriate cash flow
analyses and monthly or quarterly budget revisions, and to
appropriately record all receivables and payables.

(6) Determine whether there are any financial problem areas
and may employ, at county office of education expense, a certified
public accounting firm to investigate financial problem areas.

(7) Withhold compensation of the members of the county board
of education and the county superintendent for failure to provide
requested financial information.

(c) The county office of education shall pay reasonable fees
charged by the Superintendent of Public Instruction for actual
administrative expenses incurred pursuant to subdivision (b), or
costs associated with improving the county office of education’s
financial management practices.

(d) This section shall not be construed to authorize the
Superintendent begin delete of Public Instruction end delete to abrogate any provision of
a collective bargaining agreement that was entered into by a county
office of education prior to the date upon which the Superintendent
begin delete of Public Instruction end delete disapproved the budget of the county office
of education pursuant to subdivision (b).

(e) As he or she deems necessary for the purposes set forth in
subdivision (b), the Superintendent begin delete of Public Instruction end delete may seek
from the county office of education, or otherwise obtain, additional
information regarding the budget or operations of the county office
of education, through a financial or management review of the
county office of education, a cash-flow projection, or other
appropriate means.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 2509 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2509.  

(a) Whenever a county board of supervisors adopts the
provisions of Section 1080 or 42649 and thereby transfers certain
duties of the county auditor to the county superintendent of schools
as provided therein, the revenue limit amount computed pursuant
to subdivision (a) of Section 2551 for that county superintendent
of schools shall, commencing with the fiscal year in which the
effective date of the transfer occurs, be increased by an amount
equivalent to the expenditures from the county general fund used
to provide those services of the county auditor in the fiscal year
immediately prior to the date of the transfer of functions to the
county superintendent of schools. The amount of the increase shall
be mutually agreed upon by both the county board of supervisors
and the county superintendent of schools, as required by
subdivision (a) of Section 3 of Article XIII B of the California
Constitution. The Superintendent of Public Instruction shall adjust
the revenue limit computed pursuant to subdivision (a) of Section
2551 prior to the application of the inflation allowance specified
in Section 2557.

(b) Commencing with the fiscal year in which the effective date
of the transfer occurs, the county auditor shall, from the county’s
allocation of taxes, add to the allocation of taxes to the county
superintendent of schools, computed pursuant to Chapter 6
(commencing with Section 95) of Part 0.5 of the Revenue and
Taxation Code, an amount equal to the amount of the increase
agreed upon pursuant to subdivision (a), increased by the
percentage growth in the taxable assessed value from the equalized
assessment roll for the county, for the fiscal year in which the
effective date of the transfer occurs, as compared to the fiscal year
prior to the transfer. In each fiscal year thereafter, the amount to
be added to the allocation of taxes to the county superintendent of
schools shall be the amount added pursuant to this subdivision in
the prior fiscal year, increased by the percentage growth in the
taxable assessed value from the equalized assessment roll for the
county for the then current fiscal year, as compared to the prior
fiscal year.

end delete

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 2550 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2550.  

For each fiscal year, the Superintendent shall make the
following computations to determine the amount to be allocated
for direct services and other purposes provided by county
superintendents of schools:

(a) For programs operated pursuant to subdivision (a) of Section
14054, the Superintendent shall:

(1) Determine the allowances that county superintendents
received per unit of average daily attendance in the prior fiscal
year. The Superintendent shall increase each amount by a
percentage equal to the inflation allowance calculated for the
current fiscal year pursuant to Section 2557.

(2) Multiply each amount determined in paragraph (1) by the
actual number of units of average daily attendance in the prior
fiscal year for programs maintained by each county superintendent.
For purposes of this paragraph, the number of units of average
daily attendance shall include only units generated by elementary
districts with less than 901 units of average daily attendance, high
school districts with less than 301 units of average daily attendance,
and unified school districts with less than 1,501 units of average
daily attendance within each county superintendent’s jurisdiction.

(b) For programs operated pursuant to subdivision (b) of Section
14054, the Superintendent shall:

(1) (A) For the 1999-2000 fiscal year, determine the rate per
unit of average daily attendance calculated for each county office
of education pursuant to subdivision (b) of Section 2567 and
increase each rate by a percentage equal to the inflation allowance
calculated in Section 2557.

(B) For the 2000-01 fiscal year, determine the rate per unit of
average daily attendance calculated for each county office of
education pursuant to subdivision (b) of Section 2568 and increase
each rate by a percentage equal to the inflation allowance calculated
in Section 2557.

(C) For the 2001-02 fiscal year and each fiscal year thereafter,
determine the allowances that county superintendents received per
unit of average daily attendance in the prior fiscal year. The
Superintendent shall increase each amount by a percentage equal
to the inflation allowance calculated for the current fiscal year
pursuant to Section 2557.

(2) (A) Multiply each amount determined in paragraph (1) by
the units of average daily attendance in the current fiscal year for
programs for kindergarten and grades 1 to 12, inclusive, maintained
by each county superintendent. For the purposes of this paragraph,
average daily attendance shall include only the total units of
average daily attendance credited to all elementary, high school,
and unified school districts within each county superintendent’s
jurisdiction and to the county superintendent.

(B) For purposes of this paragraph, in each of the 2008-09,
2009-10, 2010-11, 2011-12, 2012-13, 2013-14, and 2014-15
fiscal years, the units of average daily attendance in each of those
fiscal years for programs for kindergarten and grades 1 to 12,
inclusive, maintained by each county superintendent shall include
the same amount of average daily attendance for classes for adults
and regional occupational centers and programs used in the
calculation pursuant to this subdivision for the 2007-08 fiscal year.

end delete

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 2550.1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2550.1.  

(a) Commencing with the 2002-03 fiscal year, and
each fiscal year thereafter, for juvenile court school programs
operated by county superintendents of schools pursuant to Article
2.5 (commencing with Section 48645) of Chapter 4 of Part 27 and
for county community school programs operated by county
superintendents of schools pursuant to Chapter 6.5 (commencing
with Section 1980) of Part 2, the Superintendent of Public
Instruction shall make the following computations:

(1) Apply an inflation adjustment equal to the percentage
increase applied to the statewide average revenue limit for school
districts pursuant to Section 42238.1, multiplied by the revenue
limits of the prior fiscal year for each juvenile court school program
and for each county community school program, including
programs with average daily attendance for pupils enrolled pursuant
to subdivision (c) of Section 1981 that exceeds the average daily
attendance claimed in the 1991-92 fiscal year.

(2) Multiply the revenue limits per unit of average daily
attendance computed in paragraph (1) by the number of units of
average daily attendance for each juvenile court school program
and county community school program operated in that same fiscal
year.

(b) Cost-of-living adjustments to revenue limits per unit average
daily attendance in juvenile court school and county community
school programs operated by county superintendents of schools
shall be computed pursuant to paragraph (1) of subdivision (a) in
fiscal years in which appropriations are provided for that purpose.

end delete

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 2550.2 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2550.2.  

The Superintendent of Public Instruction shall make
the following computations to determine the revenue limits for
juvenile court school programs operated by county superintendents
of schools pursuant to Article 2.5 (commencing with Section
48645) of Chapter 4 of Part 27:

(a) For the 1985-86 fiscal year and each fiscal year thereafter,
add to the prior fiscal year revenue limit per unit of average daily
attendance for juvenile court school programs all of the following
amounts:

(1) An equalization adjustment for revenue limits per unit of
average daily attendance that in the 1988-89 fiscal year were below
the statewide average for that fiscal year, computed as follows:

(A) Subtract the county’s 1988-89 fiscal year revenue limit per
unit of average daily attendance from the statewide average revenue
limit for juvenile court school programs for the 1988-89 fiscal
year.

(B) Notwithstanding subdivision (c), for the 1989-90 fiscal
year, the amount calculated pursuant to subparagraph (A).

(2) An inflation adjustment equal to the percentage increase
applied to the statewide average revenue limit for school districts
multiplied by the statewide average revenue limit for juvenile court
school programs for the prior fiscal year.

(b) The Superintendent of Public Instruction shall multiply the
revenue limit per unit of average daily attendance computed in
subdivision (a) by the number of units of average daily attendance
for county juvenile court school programs for the current fiscal
year.

(c) In no event shall the amount computed pursuant to paragraph
(1) of subdivision (a) exceed the amount computed pursuant to
paragraph (2) of subdivision (a).

(d) As a condition of receiving an equalization adjustment
pursuant to paragraph (1) of subdivision (a), the county
superintendent of schools shall certify to the Superintendent of
Public Instruction that all the funds received pursuant to this section
are expended solely for purposes of operating juvenile court school
programs pursuant to Article 2.5 (commencing with Section 48645)
of Chapter 4 of Part 27 or of serving pupils enrolled in community
schools pursuant to subdivision (c) of Section 1981.

(e) In any fiscal year in which Section 2550.1 is operative, this
section shall be inoperative.

end delete

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 2550.4 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2550.4.  

(a) Effective July 1, 1998, the Superintendent of Public
Instruction shall make one-time adjustments to the revenue limits
per unit of average daily attendance of each county office of
education for those programs which, prior to July 1, 1998, were
authorized in Section 46010 as it read on July 1, 1996, to include
certain absences in reports of attendance made pursuant to Section
41601. Those one-time adjustments shall apply for the 1998-99
fiscal year, and for each fiscal year thereafter, but not for any year
prior to 1998-99, and shall be accomplished by revision of the
prior fiscal year revenue limits per unit of average daily attendance
calculated for those programs, as follows:

(1) Determine revised revenue limits per unit of average daily
attendance for the 1996-97 fiscal year for each of the programs.
Each revised revenue limit per unit of average daily attendance
shall equal funding received for the program for the 1996-97 fiscal
year that is directly attributable to the original revenue limit per
unit of average daily attendance, divided by the attendance,
excluding absences excused pursuant to subdivision (b) of Section
46010 as it read on July 1, 1996, reported pursuant to Section
41601 for that program in the 1996-97 fiscal year.

(2) For the 1996-97 and 1997-98 fiscal years, recalculate the
revenue limits per unit of average daily attendance for each
program to reflect the revision in the revenue limits per unit of
average daily attendance determined pursuant to paragraph (1).

(3) The calculation made pursuant to paragraph (2) shall not be
used for apportionment purposes for either of those years or for
adjustments for those years.

(b) If any county superintendent of schools demonstrates to the
satisfaction of the Superintendent of Public Instruction that,
because of extraordinary circumstances beyond the control of the
county office of education, the amount of absences excused in one
or more county office programs in fiscal year 1996-97 pursuant
to subdivision (b) of Section 46010 as it read on July 1, 1996, was
significantly lower than it would ordinarily have been in
comparison to the amount of actual attendance in fiscal year
1996-97, the Superintendent of Public Instruction shall make a
compensating adjustment, consistent with the provisions of Section
2 of the Education Code, in the calculation set forth in this section.

end delete

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 2550.5 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2550.5.  

(a) For each fiscal year to which Section 2550.6
applies, revenue limit increases calculated pursuant to subdivisions
(b) to (f), inclusive, of Section 2550.6 and revenue limit increases
made pursuant to Section 2550.7 shall be funded from the amounts
available for the inflation adjustment calculated pursuant to
paragraph (2) of subdivision (a) of Section 2550.2. Those amounts
shall be allocated as set forth in this section.

(b) The revenue limit increases calculated pursuant to
subdivisions (b) to (f), inclusive, of Section 2550.6 shall be funded
as follows:

(1) The revenue limit increases shall be funded from the funds
derived from any amounts available for the inflation adjustment
calculated pursuant to paragraph (2) of subdivision (a) of Section
2550.2.

(2) If no funds from the inflation adjustment are available, or
if the funds available for the inflation adjustment are not sufficient
to fully fund the revenue limit increases, the Superintendent of
Public Instruction shall reduce the revenue limit increases for the
fiscal year in which the funds are insufficient on a pro rata basis.

(c) In the first fiscal year that the funds that are available for
the inflation adjustment calculated pursuant to paragraph (2) of
subdivision (a) of Section 2550.2 exceed the amount needed to
fully fund the revenue limit increases calculated pursuant to
subdivisions (b) to (f), inclusive, of Section 2550.6, the
Superintendent of Public Instruction shall, from those excess funds,
allocate the amounts necessary to increase the revenue limits of
county superintendents of schools pursuant to Section 2550.7. If
those funds are not sufficient to fully fund the revenue limit
increases described in Section 2550.7, the Superintendent of Public
Instruction shall make allocations for those revenue limit increases
on a pro rata basis. The Superintendent of Public Instruction shall,
in each subsequent fiscal year that those excess funds are available,
continue to allocate funds for the purposes of Section 2550.7 until
the revenue limits are increased to the level contemplated by that
section.

(d) If after making the allocation described in subdivision (c)
excess funds are available, the Superintendent of Public Instruction
shall, for the purpose of making an inflation adjustment, allocate
those funds in a uniform amount per unit of average daily
attendance for each school receiving a revenue limit increase
pursuant to the relevant subdivision of subdivision (b), (c), (d),
(e), or (f) of Section 2550.6, with the uniform amount per unit of
average daily attendance reduced as necessary and the amount
thereby saved allocated to any school that does not receive a
revenue limit increase pursuant to the relevant subdivision (b), (c),
(d), (e), or (f) of Section 2550.6 to ensure that it has a funding level
per unit of average daily attendance in the then current fiscal year
that is not less than the highest funding level per unit of average
daily attendance in the then current fiscal year for schools that
receive a revenue limit increase pursuant to the relevant subdivision
(b), (c), (d), (e), or (f) of Section 2550.6.

(e) If in the 2000-01 fiscal year there are not sufficient funds
available to fully fund revenue limits for schools subject to Section
2550.6 at the level calculated pursuant to subdivision (f) of Section
2550.6, then the Superintendent of Public Instruction shall continue
to equalize revenue limits per unit of average daily attendance for
those schools in a manner consistent with Section 2550.6 in the
2001-02 fiscal year, and in any subsequent fiscal year, as
necessary, and consistent with subdivision (f) of Section 2550.6.

(f) The equalization of revenue limits per unit of average daily
attendance pursuant to Section 2550.6 shall be complete in the
fiscal year in which the revenue limit per unit of average daily
attendance, as computed pursuant to Section 2550.6, for each
school subject to this section is within the following range:

(1) Not less than the statewide average revenue limit per unit
of average daily attendance for pupils enrolled in schools for the
prior fiscal year multiplied by the inflation adjustment computed
pursuant to paragraph (2) of subdivision (a) of Section 2550.2 for
the current fiscal year.

(2) Not more than the product calculated in paragraph (1)
multiplied by 1.15.

(g) For the purpose of this section, “school” or “schools” means
juvenile court schools operated by a county superintendent of
schools pursuant to Article 2.5 (commencing with Section 48645)
of Chapter 4 of Part 27, and county community schools described
in subdivision (c) of Section 1981, that are subject to Section
2550.6.

(h) In any fiscal year in which Section 2550.1 is operative, this
section shall be inoperative.

end delete

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 2550.6 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2550.6.  

The revenue limit per unit of average daily attendance
for each juvenile court school operated by a county superintendent
of schools pursuant to Article 2.5 (commencing with Section
48645) of Chapter 4 of Part 27 and each county community school
described in subdivision (c) of Section 1981 shall be subject to the
following equalization adjustments:

(a) For the purposes of determining the revenue limit per unit
of average daily attendance, make the following computations:

For the 1996-97 fiscal year, compute the statewide average
revenue limit per unit of average daily attendance calculated
pursuant to Section 2550.2 for the 1995-96 fiscal year for pupils
enrolled in juvenile court schools pursuant to Article 2.5
(commencing with Section 48645) of Chapter 4 of Part 27 and for
pupils enrolled in county community schools pursuant to
subdivision (c) of Section 1981, as that section existed on June
30, 1996.

(b) If the revenue limit per unit of average daily attendance for
the 1995-96 fiscal year determined pursuant to Section 2550.2 for
the county superintendent of schools is less than the amount
determined in subdivision (a), make the following computations:

(1) From the amount determined in subdivision (a), subtract the
revenue limit per unit of average daily attendance for the 1995-96
fiscal year determined pursuant to Section 2550.2.

(2) Multiply the amount determined pursuant to paragraph (1)
by 0.20.

(3) Add the amount determined in paragraph (2) to the revenue
limit per unit of average daily attendance determined for the
1995-96 fiscal year.

(4) Add the amount determined in paragraph (3) to the inflation
adjustment, if any, provided for the 1996-97 fiscal year pursuant
to subdivision (d) of Section 2550.5. The amount of the sum is the
revenue limit per unit of average daily attendance for the 1996-97
fiscal year for juvenile court schools and county community
schools subject to this subdivision.

(c) The revenue limit per unit of average daily attendance for
the 1997-98 fiscal year for each county superintendent of schools
subject to subdivision (b) shall be determined as follows:

(1) Increase the amount determined in subdivision (a) by the
inflation adjustment for the 1996-97 fiscal year as determined in
paragraph (2) of subdivision (a) of Section 2550.2.

(2) If the revenue limit per unit of average daily attendance
calculated pursuant to paragraph (4) of subdivision (b) is less than
the amount determined pursuant to paragraph (1), make the
following computation:

(A) From the amount calculated pursuant to paragraph (1)
subtract the revenue limit per unit of average daily attendance
calculated pursuant to paragraph (4) of subdivision (b).

(B) Multiply the amount determined in subparagraph (A) by
0.25.

(C) Add the amount determined in subparagraph (B) to the
revenue limit per unit of average daily attendance calculated
pursuant to paragraph (4) of subdivision (b) as increased by the
inflation adjustment, if any, provided for the 1997-98 fiscal year
pursuant to subdivision (d) of Section 2550.5. The amount of this
sum is the revenue limit per unit of average daily attendance for
the 1997-98 fiscal year for juvenile court schools and county
community schools subject to this subdivision.

(d) The revenue limit per unit of average daily attendance for
the 1998-99 fiscal year for each county superintendent of schools
subject to subdivision (c) shall be determined as follows:

(1) Increase the amount determined in paragraph (1) of
subdivision (c) by the inflation adjustment for the 1997-98 fiscal
year as determined in paragraph (2) of subdivision (a) of Section
2550.2.

(2) If the revenue limit per unit of average daily attendance
calculated pursuant to subparagraph (C) of paragraph (2) of
subdivision (c) is less than the amount determined pursuant to
paragraph (1), make the following computation:

(A) From the amount calculated pursuant to paragraph (1)
subtract the revenue limit per unit of average daily attendance
calculated pursuant to subparagraph (C) of paragraph (2) of
subdivision (c).

(B) Multiply the amount determined in subparagraph (A) by
0.33.

(C) Add the amount determined in subparagraph (B) to the
revenue limit per unit of average daily attendance calculated
pursuant to subparagraph (C) of paragraph (2) of subdivision (c)
as increased by the inflation adjustment, if any, provided for the
1998-99 fiscal year pursuant to subdivision (d) of Section 2550.5.
The amount of this sum is the revenue limit per unit of average
daily attendance for the 1998-99 fiscal year for juvenile court
schools and county community schools subject to this subdivision.

(e) The revenue limit per unit of average daily attendance for
the 1999-2000 fiscal year for each county superintendent of
schools subject to subdivision (d) shall be the amount determined
as follows:

(1) Increase the amount determined in paragraph (1) of
subdivision (d) by the inflation adjustment for the 1998-99 fiscal
year as determined in paragraph (2) of subdivision (a) of Section
2550.2.

(2) If the revenue limit per unit of average daily attendance
calculated pursuant to subparagraph (C) of paragraph (2) of
subdivision (d) is less than the amount determined pursuant to
paragraph (1), make the following computation:

(A) From the amount calculated pursuant to paragraph (1)
subtract the revenue limit per unit of average daily attendance
calculated pursuant to subparagraph (C) of paragraph (2) of
subdivision (d).

(B) Multiply the amount determined in subparagraph (A) by
0.5.

(C) Add the amount determined in subparagraph (B) to the
revenue limit per unit of average daily attendance calculated
pursuant to subparagraph (C) of paragraph (2) of subdivision (d)
as increased by the inflation adjustment, if any, provided for the
1999-2000 fiscal year pursuant to subdivision (d) of Section
2550.5. The amount of this sum is the revenue limit per unit of
average daily attendance for the 1999-2000 fiscal year for juvenile
court schools and county community schools subject to this
subdivision.

(f) The revenue limit per unit of average daily attendance for
the 2000-01 fiscal year for each county superintendent of schools
subject to subdivision (e) shall be the amount determined in
subdivision (a) as adjusted for inflation in the 1996-97, 1997-98,
1998-99, 1999-2000, and 2000-01 fiscal years pursuant to
paragraph (2) of subdivision (a) of Section 2550.2.

(g) In any fiscal year in which Section 2550.1 is operative this
section shall be inoperative.

end delete

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 2550.7 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2550.7.  

The Superintendent of Public Instruction shall
apportion funds for each unit of average daily attendance in county
community school programs operated by a county superintendent
of schools for pupils enrolled therein pursuant to subdivision (a),
(b), (c), or (d) of Section 1981 if the county superintendent of
schools claims an annual county community school average daily
attendance of 20 or less, at the revenue limit per unit of average
daily attendance provided for in subdivision (b) of Section 1982.

end delete

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 2551.3 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2551.3.  

(a) For the 1979-80 fiscal year and each fiscal year
thereafter, the Superintendent of Public Instruction shall make the
following computations to determine the state aid to be allocated
for pregnant minors programs operated by county superintendents
of schools:

(1) The Superintendent of Public Instruction shall determine
expenditures made by the county office for the 1979-80 fiscal year
and shall divide such amount by the average daily attendance in
such program for the 1979-80 fiscal year.

(2) For the 1980-81 fiscal year, the quotient computed pursuant
to paragraph (1) shall be increased by 9 percent, and shall be
cumulatively increased in each fiscal year thereafter by the average
inflation allowance applied to unified school district revenue limits,
except that there shall be no inflation adjustment after the 1998-99
fiscal year.

(3) The amount computed pursuant to paragraph (2) shall be
multiplied by the average daily attendance in pregnant minors
programs for the then current fiscal year.

(b) The product computed pursuant to paragraph (3) of
subdivision (a) shall be added to the sum computed pursuant to
subdivision (a) of Section 2558.

(c) The funding provided by this section shall be for the purposes
of subdivision (b) of Section 54749.5 and shall not be adjusted for
inflation.

end delete

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 2557 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2557.  

(a) For each fiscal year, the prior year revenue limits
per average daily attendance, class, or instructional hour,
determined in Section 2550, and the prior year total revenue limits
determined in Section 2551 shall be increased by a percentage
equal to the percentage increase applied to the statewide average
revenue limit for unified school districts for the then current fiscal
year, except for the 1981-82 fiscal year, the increase shall not
exceed 7.2 percent, and for the 1983-84 fiscal year, the increase
shall be 8 percent. The resulting amounts shall then be multiplied
by the estimated number of classes, units of average daily
attendance, instructional hour, or pupils receiving special education
services, as appropriate for the then current fiscal year.

(b) Notwithstanding subdivision (a), the inflation allowance for
the 1982-83 fiscal year shall be reduced by one-fourth of the
amount otherwise prescribed by subdivision (a), as specified in
subdivision (m) of Section 42238, except to the extent a greater
allowance may be funded by funds provided by the Budget Act of
1982. The inflation allowance for each year following the 1982-83
fiscal year shall be computed as if any reduction made pursuant
to this subdivision had not been made.

end delete

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 2557.5 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2557.5.  

(a) For the 1987-88 fiscal year, and each fiscal year
thereafter, the revenue limit of any county superintendent of
schools authorized pursuant to Section 2551, as that section read
on January 1, 1999, may be increased by an amount sufficient to
provide additional revenue equal to the expenditure estimated to
be incurred by the county superintendent of schools in the budget
year in complying with the following provisions of the
Unemployment Insurance Code: Sections 605 and 803, Article 6
(commencing with Section 821) of Chapter 3 of Part 1 of Division
1, or Article 3 (commencing with Section 976) of Chapter 4 of
Part 1 of Division 1, less the actual expenditures incurred by the
county superintendent of schools in the 1975-76 fiscal year in
complying with the following provisions of the Unemployment
Insurance Code: Article 6 (commencing with Section 821) of
Chapter 3 of Part 1 of Division 1 and former Section 605.2.

(b) The increase in revenue limit provided in subdivision (a)
shall be adjusted annually, including plus or minus adjustments
for under- or over-estimating expenditures used in determining
the increase in revenue limit provided by subdivision (a) in the
previous fiscal year.

(c) (1) For the 1994-95 to 2002-03 fiscal years, inclusive, the
amount of the increase computed pursuant to this section may not
be adjusted by the deficit factor applied to the revenue limit of
each county superintendent of schools pursuant to Section 2558.45.

(2) For the 2003-04 fiscal year and each fiscal year thereafter,
the revenue limit reduction specified in Section 2558.46 may not
be applied to the adjustment computed pursuant to this section.

(d) Expenditures for employees of charter schools funded
pursuant to Article 2 (commencing with Section 47633) of Chapter
6 of Part 26.8 are excluded from the calculations set forth in this
section.

end delete

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 2558.1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2558.1.  

For the 1986-87 fiscal year and each fiscal year
thereafter, the apportionment computed pursuant to subdivision
(d) of Section 2558 shall be increased by the amount reported by
the Teachers’ Retirement Board for that county office of education
under Section 23400.3. This additional amount shall be increased
annually by the amount of the inflation allowance computed under
Section 2557.

end delete

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 2558.3 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2558.3.  

Unless the Budget Act specifically states otherwise,
whenever the Budget Act requires the county superintendent to
reduce revenue limits to reflect decreased employer contributions
to the Public Employee’s Retirement System, in addition to any
other exclusions specified in the Budget Act, the calculation of
the reduction shall exclude any increased contribution imposed
pursuant to Section 20750.98 of the Government Code.

end delete

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 2558.4 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2558.4.  

For the purposes of this article, the revenue limit for
the 1993-94 fiscal year for each county superintendent of schools
determined pursuant to this article and adjusted pursuant to Section
2558.6 shall be reduced by a 9.77 percent deficit factor.

end delete

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 2558.45 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2558.45.  

For the purposes of this article the revenue limit of
each county superintendent of schools shall be reduced by a deficit
factor, as follows:

(a) (1) The revenue limit for the 1994-95 fiscal year for each
county superintendent of schools determined pursuant to this article
shall be reduced by a 12.59 percent deficit factor.

(2) The revenue limit for the 1995-96 fiscal year determined
pursuant to this article for each county superintendent of schools
shall be reduced by an 11.70 percent deficit factor.

(3) The revenue limit for the 1996-97 and 1997-98 fiscal years
determined pursuant to this article for each county superintendent
of schools shall be reduced by an 11.547 percent deficit factor, as
adjusted pursuant to Section 42238.41.

(4) The revenue limit for the 1999-2000 fiscal year determined
pursuant to this article for each county superintendent of schools
shall be reduced by a 8.628 percent deficit factor.

(b) (1) The revenue limit for each county superintendent of
schools for the 1994-95 fiscal year shall be determined as if the
revenue limit for each county superintendent of schools had been
determined for the 1993-94 fiscal year without being reduced by
the deficit factor required pursuant to Section 2558.4.

(2) When computing the revenue limit for each county
superintendent of schools for the 1995-96 or any subsequent fiscal
year pursuant to this article, the revenue limit shall be determined
as if the revenue limit for each county superintendent of schools
had been determined for the previous fiscal year without being
reduced by the deficit factor specified in this section.

end delete

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 2558.46 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2558.46.  

(a) (1) For the 2003-04 fiscal year, the revenue limit
for each county superintendent of schools determined pursuant to
this article shall be reduced by a 1.195 percent deficit factor.

(2) For the 2004-05 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 0.323 percent deficit factor.

(3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each county superintendent of schools determined pursuant to
this article shall be reduced further by a 1.826 percent deficit factor.

(4) For the 2005-06 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced further by a 0.898 percent deficit factor.

(5) For the 2008-09 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 7.839 percent deficit factor.

(6) For the 2009-10 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by an 18.621 percent deficit factor.

(7) For the 2010-11 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by an 18.250 percent deficit factor.

(8) For the 2011-12 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 20.691 percent deficit factor.

(9) For the 2012-13 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 22.549 percent deficit factor.

(b) In computing the revenue limit for each county
superintendent of schools for the 2006-07 fiscal year pursuant to
this article, the revenue limit shall be determined as if the revenue
limit for that county superintendent of schools had been determined
for the 2003-04, 2004-05, and 2005-06 fiscal years without being
reduced by the deficit factors specified in subdivision (a).

(c) In computing the revenue limit for each county
superintendent of schools for the 2010-11 fiscal year pursuant to
this article, the revenue limit shall be determined as if the revenue
limit for that county superintendent of schools had been determined
for the 2009-10 fiscal year without being reduced by the deficit
factors specified in subdivision (a).

(d) In computing the revenue limit for each county
superintendent of schools for the 2011-12 fiscal year pursuant to
this article, the revenue limit shall be determined as if the revenue
limit for that county superintendent of schools had been determined
for the 2010-11 fiscal year without being reduced by the deficit
factors specified in subdivision (a).

(e) In computing the revenue limit for each county
superintendent of schools for the 2012-13 fiscal year pursuant to
this article, the revenue limit shall be determined as if the revenue
limit for that county superintendent of schools had been determined
for the 2011-12 fiscal year without being reduced by the deficit
factor specified in subdivision (a).

(f) In computing the revenue limit for each county
superintendent of schools for the 2013-14 fiscal year pursuant to
this article, the revenue limit shall be determined as if the revenue
limit for that county superintendent of schools had been determined
for the 2012-13 fiscal year without being reduced by the deficit
factors specified in subdivision (a).

end delete

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 2558.5 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2558.5.  

Except as provided in Section 2559, for the 1981-82
fiscal year and each fiscal year thereafter, revenues received
pursuant to Section 2558, and any ending balances from the prior
fiscal year from state or local revenues, may be used by the county
superintendent for any of the programs operated by the county
office.

end delete

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 2558.6 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2558.6.  

Notwithstanding any other provision of law, for the
1994-95 fiscal year the county superintendent of schools shall
reduce the total revenue limit computed pursuant to Section 2558
of the Education Code by the amount of the decreased employer
contributions to the Public Employees’ Retirement System resulting
from the enactment of Chapter 330 of the Statutes of 1982, adjusted
for any changes in those contributions resulting from subsequent
changes in employer contribution rates, excluding rate changes
due to the direct transfer of the state-mandated portion of the
employer contributions to the Public Employees’ Retirement
System, through the 1994-95 fiscal year. The reduction shall be
calculated for each county superintendent of schools as follows:

(a) Determine the amount of employer contributions that would
have been made in the 1994-95 fiscal year if the applicable Public
Employees’ Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes
of 1982 were in effect during the 1994-95 fiscal year.

(b) Subtract from the amount determined in subdivision (a) the
actual amount of employer contributions made to the Public
Employees’ Retirement System in the 1994-95 fiscal year.

(c) For the purposes of this section, employer contributions to
the Public Employees’ Retirement System for any of the following
positions shall be excluded from the calculation specified above:

(1) Positions or portions of positions supported by federal funds
that are subject to supplanting restrictions.

(2) Positions supported by funds received pursuant to Section
42243.6 of the Education Code.

(3) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by any single
educational agency, from a non-General Fund revenue source
determined to be properly excludable from this section by the
Superintendent of Public Instruction with the approval of the
Director of Finance.

(d) For accounting purposes, the reduction made by this
provision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent of Public
Instruction.

(e) The amount of the reduction made by this section shall not
be adjusted by the deficit factor calculated pursuant to Section
2558.45.

It is the intent of the Legislature to make adjustments to county
office of education revenue limits for the 1994-95 fiscal year to
reflect savings that these county offices of education will realize
in the contributions to the Public Employees’ Retirement System
due to a reduced contribution rate for the 1994-95 fiscal year.

end delete

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Article 3.5 (commencing with Section 2560) of
Chapter 12 of Part 2 of Division 1 of Title 1 of the end insert begin insert Education Code end insert
begin insert is repealed. end insert

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 14022.5 of the end insert begin insert Education Code end insert begin insert , as added by
Section 2 of Chapter 82 of the Statutes of 1989, is repealed. end insert

begin delete

14022.5.  

(a) For purposes of Section 8.5 of Article XVI of the
California Constitution, the term “enrollment” shall have the
following meaning for school districts, community college districts,
and state agencies providing direct elementary and secondary level
instructional services:

(1) In school districts:

(A) The average daily attendance of each school district reported
for the second principal apportionment pursuant to Section 41601.

(B) The annual average daily attendance for adult education
programs and classes, as determined under subdivision (d) of
Section 41601.

(C) The annual average daily attendance for regional
occupational centers and programs, as determined under
subdivision (d) of Section 41601.

(D) The average daily attendance of apprentices enrolled in any
class and reported pursuant to Section 8150, except that one unit
of average daily attendance, for purposes of this paragraph, shall
equal 525 hours of apprenticeship instruction in an apprenticeship
program operated pursuant to Chapter 4 (commencing with Section
3070) of Division 3 of the Labor Code.

(E) (i) The annual average daily attendance for children enrolled
in a state preschool program under the Child Care and Development
Services Act (Chapter 2 (commencing with Section 8200) of Part
6), except that one unit of average daily attendance, for purposes
of this clause, shall equal 700 hours of child care or preschool
services.

(ii) The annual average daily attendance for children enrolled
in any other program under the Child Care and Development
Services Act (Chapter 2 (commencing with Section 8200) of Part
6), except that one unit of average daily attendance, for purposes
of this clause, shall equal 250 days of child care services. For the
purposes of this clause, less than four hours per day of child care
services shall be defined as one-half day, from four up to six and
one-half hours per day shall be defined as three-fourths day, and
six and one-half hours or more per day shall be defined as one full
day.

(F) The annual average daily attendance of pupils enrolled in
summer school, computed pursuant to Section 42239, except that
one unit of average daily attendance shall equal 700 hours of
summer school instruction in an approved summer school program.

(G) The annual average daily attendance for pupils enrolled in
an educational program offered by a county office of education,
as determined pursuant to subdivisions (b) and (c) of Section
41601.

(2) In community college districts:

(A) The annual average daily attendance of a community college
district computed pursuant to Chapter 4 (commencing with Section
84500) of Part 50, until Section 84750 becomes operative, and
thereafter the number of full-time equivalent students as computed
pursuant to Section 84750.

(B) The annual average daily attendance for evening community
college programs designated as adult schools pursuant to Section
78401, as determined pursuant to Section 78405.

(C) The annual average daily attendance of apprentices enrolled
in any class and reported pursuant to Section 8150, except that one
unit of average daily attendance, for purposes of this paragraph,
shall equal 525 hours of apprenticeship instruction in an
apprenticeship program operated pursuant to Chapter 4
(commencing with Section 3070) of Division 3 of the Labor Code.

(3) In state agencies that provide direct elementary and
secondary level instructional services:

(A) The annual average daily attendance equivalent for pupils
enrolled in the State Schools for the Handicapped pursuant to Part
32 (commencing with Section 59000).

(B) The annual average daily attendance equivalent for pupils
attending an educational program administered by the Department
of the Youth Authority pursuant to Article 6 (commencing with
Section 1120) and Article 10 (commencing with Section 1250) of
Part 1 of Division 2 of Chapter 3 of the Welfare and Institutions
Code.

(C) The annual average daily attendance equivalent for pupils
in the state hospitals operated by the State Department of
Developmental Services pursuant to Chapter 8 (commencing with
Section 56850) of Part 30.

(b) Any determination or computation of enrollment for purposes
of this section shall be based upon actual data from prior years.
For the next succeeding year, any determination or computation
of enrollment for purposes of this section shall be the estimated
enrollment, adjusted as actual data become available.

(c) This section shall remain in effect only until July 1, 1990,
and as of that date is repealed, unless Senate Constitutional
Amendment No. 1 is ratified by the voters at the statewide election
to be held on June 5, 1990.

end delete

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 33128.2 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

33128.2.  

(a) Notwithstanding the standards and criteria adopted
pursuant to paragraph (3) of subdivision (a) of Section 33128 or
any other law, for the 2002-03 fiscal year only, a local educational
agency may use for purposes determined by its governing body
up to 50 percent of its reserves for economic uncertainties and up
to 50 percent of the balances, as of July 1, 2002, of restricted
accounts in its General Fund, excluding restricted reserves
committed for capital outlay, bond funds, sinking funds, and federal
funds, in order to provide local budgeting flexibility as a result of
midyear budget reductions for the 2002-03 fiscal year that are
enacted by the Legislature after January 2003.

(b) A local educational agency may not, pursuant to paragraph
(a), use the combined budgetary reserves in excess of its total
midyear budget reductions for the 2002-03 fiscal year.

(c) It is the intent of the Legislature that a local educational
agency use the flexibility provided in subdivision (a) to the extent
midyear budget reductions for the 2002-03 fiscal year occur in
the following programs:

(1) The Peer Assistance and Review Program.

(2) Supplemental instruction and remedial programs.

(3) One-time funding for the Instructional Materials Funding
Realignment Program.

(d) It is further the intent of the Legislature that a local
educational agency make every effort to maintain a prudent
expenditure plan that ensures its solvency for the 2002-03 fiscal
year and in subsequent fiscal years.

end delete

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 35160.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

35160.5.  

(a) The governing board of begin delete each end delete begin insert a end insert school district
that maintains one or more schools containing any of grades 7 to
12, inclusive, as a condition for the receipt of begin delete an end delete inflation
begin delete adjustment end delete begin insert adjustments end insert pursuant to Section begin delete 42238.1, end delete begin insert 42238.02,
as implemented by Section 42238.03, end insert shall establish a school
district policy regarding participation in extracurricular and
cocurricular activities by pupils in grades 7 to 12, inclusive. The
criteria, which shall be applied to extracurricular and cocurricular
activities, shall ensure that pupil participation is conditioned upon
satisfactory educational progress in the previous grading period.

(1) For purposes of this subdivision, “extracurricular activity”
means a program that has all of the following characteristics:

(A) The program is supervised or financed by the school district.

(B) Pupils participating in the program represent the school
district.

(C) Pupils exercise some degree of freedom in either the
selection, planning, or control of the program.

(D) The program includes both preparation for performance
and performance before an audience or spectators.

(2) For purposes of this subdivision, an “extracurricular activity”
is not part of the regular school curriculum, is not graded, does
not offer credit, and does not take place during classroom time.

(3) For purposes of this subdivision, a “cocurricular activity”
is defined as a program that may be associated with the curriculum
in a regular classroom.

(4) Any teacher graded or required program or activity for a
course that satisfies the entrance requirements for admission to
the California State University or the University of California is
not an extracurricular or cocurricular activity as defined by this
section.

(5) For purposes of this subdivision, “satisfactory educational
progress” shall include, but not necessarily be limited to, both of
the following:

(A) Maintenance of minimum passing grades, which is defined
as at least a 2.0 grade point average in all enrolled courses on a
4.0 scale.

(B) Maintenance of minimum progress toward meeting the high
school graduation requirements prescribed by the governing board.

(6) For purposes of this subdivision, “previous grading period”
does not include a grading period in which the pupil was not in
attendance for all, or a majority of, the grading period due to
absences excused by the school for reasons such as serious illness
or injury, approved travel, or work. In that event, “previous grading
period” is deemed to mean the grading period immediately prior
to the grading period or periods excluded pursuant to this
paragraph.

(7) A program that has, as its primary goal, the improvement
of academic or educational achievements of pupils is not an
extracurricular or cocurricular activity as defined by this section.

(8) The governing board of each school district may adopt, as
part of its policy established pursuant to this subdivision, provisions
that would allow a pupil who does not achieve satisfactory
educational progress, as defined in paragraph (5), in the previous
grading period to remain eligible to participate in extracurricular
and cocurricular activities during a probationary period. The
probationary period shall not exceed one semester in length, but
may be for a shorter period of time, as determined by the governing
board of the school district. A pupil who does not achieve
satisfactory educational progress, as defined in paragraph (5),
during the probationary period shall not be allowed to participate
in extracurricular and cocurricular activities in the subsequent
grading period.

(9) Nothing in this subdivision shall preclude the governing
board of a school district from imposing a more stringent academic
standard than that imposed by this subdivision. If the governing
board of a school district imposes a more stringent academic
standard, the governing board shall establish the criteria for
participation in extracurricular and cocurricular activities at a
meeting open to the public pursuant to Section 35145.

(10) The governing board of each school district annually shall
review the school district policies adopted pursuant to the
requirements of this section.

(b) (1) On or before July 1, 1994, the governing board of each
school district, as a condition for the receipt of school
apportionments from the state school fund, shall adopt rules and
regulations establishing a policy of open enrollment within the
district for residents of the district. This requirement does not apply
to a school district that has only one school or a school district
with schools that do not serve any of the same grade levels.

(2) The policy shall include all of the following elements:

(A) It shall provide that the parent or guardian of each schoolage
child who is a resident in the district may select the schools the
child shall attend, irrespective of the particular locations of his or
her residence within the district, except that school districts shall
retain the authority to maintain appropriate racial and ethnic
balances among their respective schools at the school districts’
discretion or as specified in applicable court-ordered or voluntary
desegregation plans.

(B) It shall include a selection policy for a school that receives
requests for admission in excess of the capacity of the school that
ensures that selection of pupils to enroll in the school is made
through a random, unbiased process that prohibits an evaluation
of whether a pupil should be enrolled based upon his or her
academic or athletic performance. The governing board of a school
district shall calculate the capacity of the schools in the district for
purposes of this subdivision in a nonarbitrary manner using pupil
enrollment and available space. However, school districts may
employ existing entrance criteria for specialized schools or
programs if the criteria are uniformly applied to all applicants.
This subdivision shall not be construed to prohibit school districts
from using academic performance to determine eligibility for, or
placement in, programs for gifted and talented pupils established
pursuant to begin insert former end insert Chapter 8 (commencing with Section 52200)
of Part 28 of Division begin delete 4. end delete begin insert 4, as that chapter read on January 1,
2014. end insert

(C) It shall provide that no pupil who currently resides in the
attendance area of a school shall be displaced by pupils transferring
from outside the attendance area.

(3) Notwithstanding the requirement of subparagraph (B) of
paragraph (2) that the policy include a selection policy for a school
that receives requests for admission in excess of the capacity of
the school that ensures that the selection is made through a random,
unbiased process, the policy may include either of the following
elements:

(A) (i) It may provide that special circumstances exist that
might be harmful or dangerous to a particular pupil in the current
attendance area of the pupil, including, but not necessarily limited
to, threats of bodily harm or threats to the emotional stability of
the pupil, that serve as a basis for granting a priority of attendance
outside the current attendance area of the pupil. A finding of
harmful or dangerous special circumstances shall be based upon
either of the following:

(I) A written statement from a representative of the appropriate
state or local agency, including, but not necessarily limited to, a
law enforcement official or a social worker, or properly licensed
or registered professionals, including, but not necessarily limited
to, psychiatrists, psychologists, or marriage and family therapists.

(II) A court order, including a temporary restraining order and
injunction, issued by a judge.

(ii) A finding of harmful or dangerous special circumstances
pursuant to this subparagraph may be used by a school district to
approve transfers within the district to schools that have been
deemed by the school district to be at capacity and otherwise closed
to transfers that are not based on harmful or dangerous special
circumstances.

(B) It may provide that schools receiving requests for admission
shall give priority for attendance to siblings of pupils already in
attendance in that school and to pupils whose parent or legal
guardian is assigned to that school as his or her primary place of
employment.

(4) To the extent required and financed by federal law and at
the request of the pupil’s parent or guardian, each school district
shall provide transportation assistance to the pupil.

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 35735.3 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

35735.3.  

The transfer of seventh and eighth grade pupils
between an elementary school district and a high school district
triggers the recomputation, pursuant to Section 35735.1, of the
base revenue limit per unit of average daily attendance of the
district receiving the 7th and 8th grade pupils, except that the
computations described in paragraphs (2) and (3) of subdivision
(a) of Section 35735.1 shall not apply to a recomputation performed
pursuant to this section.

end delete

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 35736 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

35736.  

Plans and recommendations may include a proposal
for dividing the property, other than real property, and obligations
of any school district proposed to be divided between two or more
school districts, or proposed to be partially included in one or more
school districts. As used in this section, “property” includes funds,
cash on hand, and moneys due but uncollected on the date
reorganization becomes effective for all purposes, and state
apportionments based on average daily attendance earned in the
year immediately preceding the date reorganization becomes
effective for all purposes. In providing for this division, the plans
and recommendations may consider the assessed valuation of each
portion of the begin insert school end insert district, the begin delete revenue limit end delete begin insert local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, end insert per pupil in each begin insert school end insert district,
the number of children of school age residing in each portion of
the begin insert school end insert district, the value and location of the school property,
and such other matters as may be deemed pertinent and equitable.
Any such proposal shall be an integral part of the proposal and not
a separate proposition.

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 35757 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

35757.  

The county superintendent of schools shall prepare a
statement of official information and statistics relating to the
proposed reorganization begin delete which end delete begin insert that end insert shall include, but is not limited
to, the plans and recommendations, the begin delete revenue limit end delete begin insert local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, end insert per pupil, the rate of growth,
the expected enrollment, and the support from the state begin delete which end delete begin insert that end insert
can be expected if such area maintains an adequate school program.
Such statistics shall be based upon the school year last completed
before the date of the election.

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 41203.7 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

41203.7.  

(a) Notwithstanding any other begin delete provision of end delete law, a
supplemental appropriation shall be made from the General Fund
for the support of school districts, as defined in Section 41302.5,
in each fiscal year for the purposes set forth in subdivision (c).
The amount of that supplemental appropriation shall be equal to
the sum of the amount allocated to school districts pursuant to this
section in the prior fiscal year and 25 percent of the amount, if
any, allocated to school districts in the prior fiscal year pursuant
to Section 8.5 of Article XVI of the California Constitution. That
amount shall be adjusted annually for changes in enrollment, and
for the change in the cost of living pursuant to paragraph (1) of
subdivision (e) of Section 8 of Article XIII B of the California
Constitution.

(b) The funds appropriated for the purposes of subdivision (a)
shall be allocated to each school district in an equal amount per
unit of enrollment, in accordance with the allocation procedure set
forth in subdivision (c) of Section 8.5 of Article XVI of the
California Constitution.

(c) The amount allocated to each school district pursuant to this
section shall be used only for the reduction of class size in any
grade level or subject area. That class size reduction shall occur
in begin delete accordance with Chapter 6.8 (commencing with Section 52080)
of Part 28 of the Education Code, or in end delete any begin delete other end delete manner
determined by the begin delete school district end delete governing begin delete board. end delete begin insert board of the
school district. end insert Not later than 90 days following each fiscal year
in which a school district receives funding pursuant to this section,
the governing board of begin delete that end delete begin insert the end insert school district shall certify in
writing to the Superintendent begin delete of Public Instruction end delete that all
expenditures of that funding were in compliance with this
subdivision.

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 41209 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

41209.  

(a) Except as provided in subdivision (b), and
notwithstanding any other provision of law, in any fiscal year
when, in addition to any allocations required pursuant to Section
42238.42, an appropriation is made for the purposes of meeting
the minimum funding requirements for public education, as set
forth in Section 8 of Article XVI of the California Constitution,
because these requirements were not sufficiently funded in a prior
fiscal year, and the appropriation is apportioned on the basis of
equal payments for each unit of each school district’s average daily
attendance, it is the intent of the Legislature that average daily
attendance shall include the average daily attendance for regular
education, adult education, and regional occupational programs
and centers, as claimed in the school year in which the funding
deficiency occurred. It is not the intent of the Legislature to
interfere with, or to change, the application of Section 42238.42.

(b) Nothing in this section shall be construed to limit the
flexibility of the Legislature or Governor to propose budget
appropriations apportioned on the basis of equal payments for each
unit of each school district’s average daily attendance that exclude
funds for adult education programs or regional occupational
programs and centers.

(c) A district receiving funds distributed as described in
subdivision (a) shall, consistent with Section 52501.5, use any
funds allocated for average daily attendance of adult education
programs or regional occupational centers or programs only for
purposes of adult education programs or regional occupational
centers or programs.

end delete

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 41320.1 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

41320.1.  

Acceptance by the school district of the
apportionments made pursuant to Section 41320 constitutes the
agreement by the school district to all of the following conditions:

(a) The Superintendent shall appoint a trustee who has
recognized expertise in management and finance and may employ,
on a short-term basis, staff necessary to assist the trustee, including,
but not limited to, certified public accountants, as follows:

(1) The expenses incurred by the trustee and necessary staff
shall be borne by the school district.

(2) The Superintendent shall establish the terms and conditions
of the employment, including the remuneration of the trustee. The
trustee shall serve at the pleasure of, and report directly to, the
Superintendent.

(3) The trustee, and necessary staff, shall serve until the school
district has adequate fiscal systems and controls in place, the
Superintendent has determined that the school district’s future
compliance with the fiscal plan approved for the school district
under Section 41320 is probable, and the Superintendent decides
to terminate the trustee’s appointment, but in no event, for less
than three years. The Superintendent shall notify the county
superintendent of schools, the Legislature, the Department of
Finance, and the Controller no less than 60 days before the time
that the Superintendent expects these conditions to be met.

(4) Before the school district repays the loan, including interest,
the recipient of the loan shall select an auditor from a list
established by the Superintendent and the Controller to conduct
an audit of its fiscal systems. If the fiscal systems are deemed to
be inadequate, the Superintendent may retain the trustee until the
deficiencies are corrected. The cost of this audit and any additional
cost of the trustee shall be borne by the school district.

(5) Notwithstanding any other law, all reports submitted to the
trustee are public records.

(6) To facilitate the appointment of the trustee and the
employment of necessary staff, for purposes of this section, the
Superintendent is exempt from the requirements of Article 6
(commencing with Section 999) of Chapter 6 of Division 4 of the
Military and Veterans Code and Part 2 (commencing with Section
10100) of Division 2 of the Public Contract Code.

(7) Notwithstanding any other law, the Superintendent may
appoint an employee of the department to act as trustee for up to
the duration of the trusteeship. The salary and benefits of that
employee shall be established by the Superintendent and paid by
the school district. During the time of appointment, the employee
is an employee of the school district, but shall remain in the same
retirement system under the same plan as if the employee had
remained in the department. Upon the expiration or termination
of the appointment, the employee shall have the right to return to
his or her former position, or to a position at substantially the same
level as that position, with the department. The time served in the
appointment shall be counted for all purposes as if the employee
had served that time in his or her former position with the
department.

(b) (1) The trustee appointed by the Superintendent shall
monitor and review the operation of the school district. During the
period of his or her service, the trustee may stay or rescind an
action of the governing board of the school district that, in the
judgment of the trustee, may affect the financial condition of the
school district.

(2) After the trustee’s period of service, and until the loan is
repaid, the county superintendent of schools that has jurisdiction
over the school district may stay or rescind an action of the
governing board of the school district that, in his or her judgment,
may affect the financial condition of the school district. The county
superintendent of schools shall notify the Superintendent, within
five business days, if he or she stays or rescinds an action of the
governing board of the school district. The notice shall include,
but not be limited to, both of the following:

(A) A description of the governing board of the school district’s
intended action and its financial implications.

(B) The rationale and findings that support the county
superintendent of school’s decision to stay or rescind the action
of the governing board of the school district.

(3) If the Superintendent is notified by the county superintendent
of schools pursuant to paragraph (2), the Superintendent shall
report to the Legislature, on or before December 30 of every year,
whether the school district is complying with the fiscal plan
approved for the school district.

(4) The Superintendent may establish timelines and prescribe
formats for reports and other materials to be used by the trustee to
monitor and review the operations of the school district. The trustee
shall approve or reject all reports and other materials required from
the school district as a condition of receiving the apportionment.
The Superintendent, upon the recommendation of the trustee, may
reduce an apportionment to the school district in an amount up to
two hundred dollars ($200) per day for each late or unacceptable
report or other material required under this part, and shall report
to the Legislature a failure of the school district to comply with
the requirements of this section. If the Superintendent determines,
at any time, that the fiscal plan approved for the school district
under Section 41320 is unsatisfactory, he or she may modify the
plan as necessary, and the school district shall comply with the
plan as modified.

(c) At the request of the Superintendent, the Controller shall
transfer to the department, from an apportionment to which the
school district would otherwise have been entitled pursuant to
Section begin delete 42238, end delete begin insert 42238.02, as implemented by Section 42238.03, end insert
the amount necessary to pay the expenses incurred by the trustee
and associated costs incurred by the county superintendent of
schools.

(d) For the fiscal year in which the apportionments are disbursed
and every year thereafter, the Controller, or his or her designee,
shall cause an audit to be conducted of the books and accounts of
the school district, in lieu of the audit required by Section 41020.
At the Controller’s discretion, the audit may be conducted by the
Controller, his or her designee, or an auditor selected by the school
district and approved by the Controller. The costs of these audits
shall be borne by the school district. These audits shall be required
until the Controller determines, in consultation with the
Superintendent, that the school district is financially solvent, but
in no event earlier than one year following the implementation of
the plan or later than the time the apportionment made is repaid,
including interest. In addition, the Controller shall conduct quality
control reviews pursuant to subdivision (c) of Section 14504.2.

(e) For purposes of errors and omissions liability insurance
policies, the trustee appointed pursuant to this section is an
employee of the local educational agency to which he or she is
assigned. For purposes of workers’ compensation benefits, the
trustee is an employee of the local educational agency to which
he or she is assigned, except that a trustee appointed pursuant to
paragraph (7) of subdivision (a) is an employee of the department
for those purposes.

(f) Except for an individual appointed by the Superintendent as
trustee pursuant to paragraph (7) of subdivision (a), the
state-appointed trustee is a member of the State Teachers’
Retirement System, if qualified, for the period of service as trustee,
unless the trustee elects in writing not to become a member. A
person who is a member or retirant of the State Teachers’
Retirement System at the time of appointment shall continue to
be a member or retirant of the system for the duration of the
appointment. If the trustee chooses to become a member or is
already a member, the trustee shall be placed on the payroll of the
school district for the purpose of providing appropriate
contributions to the system. The Superintendent may also require
that an individual appointed as trustee pursuant to paragraph (7)
of subdivision (a) be placed on the payroll of the school district
for purposes of remuneration, other benefits, and payroll
deductions. For purposes of workers’ compensation benefits, the
state-appointed trustee is deemed an employee of the local
educational agency to which he or she is assigned, except that a
trustee who is appointed pursuant to paragraph (7) of subdivision
(a) is an employee of the department for those purposes.

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 41329.55 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

41329.55.  

(a) Simultaneous with the execution of the lease
financing authorized pursuant to Section 41329.52, the bank shall
provide to the Controller and the school district a notification of
its lease financing. The notice shall include a schedule of rent
payments to become due to the bank from the school district and
the bond trustee. The Controller shall make the apportionment to
the bond trustee of those amounts on the dates shown on the
schedule. The bank may further authorize the apportionments to
be used to pay or reimburse the provider of any credit enhancement
of bonds and other ongoing or periodic ancillary costs of the bond
financing issued by the bank in connection with this article. If the
amount of rent payments vary from the schedule as a result of
variable interest rates on the bonds, early redemptions, or changes
in expenses, the bank shall amend or supplement the schedule
accordingly.

(b) Except where financing is for a community college district,
the Controller shall make the apportionment only from moneys in
Section A of the State School Fund and the Education Protection
Account designated for apportionment to the district and any
apportionment authorized pursuant to this subdivision shall
constitute a lien senior to any other apportionment or payment of
State School Fund and the Education Protection Account moneys
to or for that district not made pursuant to this subdivision.

(c) If financing is for the Compton Community College District,
the Controller shall make the apportionment only from moneys in
Section B of the State School Fund. Any apportionment authorized
pursuant to this subdivision shall constitute a lien senior to any
other apportionment or payment of Section B State School Fund
moneys.

(d) The amount apportioned for a school district pursuant to
this section is an allocation to the school district for purposes of
subdivision (b) of Section 8 of Article XVI of the California
Constitution. For purposes of computing begin delete revenue limits end delete begin insert the local
control funding formula allocation end insert pursuant to Section begin delete 42238 end delete
begin insert 42238.02, as implemented by Section 42238.03, end insert for any school
district, the begin delete revenue limit end delete begin insert local control funding formula allocation end insert
for any fiscal year in which funds are apportioned for the school
district pursuant to this section shall include any amounts
apportioned by the Controller pursuant to subdivisions (a), (b),
and (c), begin delete as well as end delete begin insert and end insert Section 41329.57.

(e) No party, including the school district or any of its creditors,
shall have any claim to the money apportioned or to be apportioned
to the bond trustee by the Controller pursuant to this section.

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 41334 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

41334.  

The Superintendent of Public Instruction shall on or
before December 10th of each year apportion:

(a) To each elementary, high school, and county school service
fund the total of amounts allowed to them under Sections 41850
to 41862, inclusive, and Sections 41930 to 41936, inclusive, and

(b) To each school district maintaining a high school or high
schools, each county superintendent of schools, the California
Youth Authority and the State Department of Education the total
of amounts allowed to them under Sections 41900 to 41912,
inclusive.

This apportionment shall be called the special purpose
apportionment.

end delete

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 41338 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

41338.  

The Superintendent of Public Instruction shall withhold
from the apportionment to an elementary school district, as a part
of the first principal apportionment and second principal
apportionment, the amount allowed the elementary school district
for the average daily attendance in grades 7 and 8 in a junior high
school by reason of the operation of subdivisions (a) and (b) of
Section 41600. The amount withheld shall be determined by
multiplying the total amount of basic state aid and state equalization
aid computed for the district by the foundation program for units
of average daily attendance in grades 7 and 8 and dividing the
product by the total foundation program of the district.

The Superintendent of Public Instruction shall add the amount
withheld to the apportionment required to be made to the high
school district maintaining the junior high school.

end delete

begin insert

begin insert SEC. 38. end insert   

end insert

begin insert Section 41341 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

41341.  

(a) (1) If, during any fiscal year, the amount
apportioned to a school district or to any fund from Section A of
the State School Fund differs either positively or negatively from
the amount to which the begin insert school end insert district or fund was entitled by an
amount equal to begin delete revenue limit end delete begin insert the local control end insert funding begin insert formula
allocation pursuant to Section 42238.02, as implemented pursuant
to Section 42238.03, end insert for one unit of average daily attendance, the
begin delete Superintendent of Public Instruction, end delete begin insert Superintendent, end insert in accordance
with regulations that he or she is hereby authorized to adopt, not
later than the first succeeding fiscal year from the fiscal year in
which the computational error was made, shall withhold from, or
add to, the apportionment made during that fiscal year, the amount
of the excess or deficiency, as the case may be. Notwithstanding
any other provision of this code to the contrary, excesses withheld
or deficiencies added by the Superintendent begin delete of Public Instruction
under end delete begin insert pursuant end insert this subdivision shall be added to or allowed from
any portion of the State School Fund.

(2) Notwithstanding paragraph (1), excesses may be withheld
or deficiencies added to apportionments on account of audit
exceptions in any fiscal year in which they are certified by the
begin delete Superintendent of Public Instruction. end delete begin insert Superintendent. end insert

(b) If, during any fiscal year, the amount apportioned to a
community college district or to any fund from Section B of the
State School Fund differs either positively or negatively from the
amount to which the begin insert community college end insert district or fund was
entitled, by an amount equal to the funding of one full-time
equivalent student, the Chancellor of the California Community
Colleges, in accordance with regulations that he or she is hereby
authorized to adopt, not later than the first succeeding fiscal year
from the fiscal year in which the computational error was made,
shall withhold from, or add to, the apportionment made during
that fiscal year, the amount of the excess or deficiency, as the case
may be. Notwithstanding any other provision of this code to the
contrary, excesses withheld or deficiencies added by the Chancellor
of the California Community Colleges under this subdivision shall
be added to or allowed from any portion of the State School Fund.

begin insert

begin insert SEC. 39. end insert   

end insert

begin insert Section 41344 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

41344.  

(a) If, as the result of an audit or review, a local
educational agency is required to repay an apportionment
significant audit exception or to pay a penalty arising from an audit
exception, the Superintendent and the Director of Finance, or their
designees, jointly shall establish a plan for repayment of state
school funds that the local educational agency received on the
basis of average daily attendance, or other data, that did not comply
with statutory or regulatory requirements that were conditions of
the apportionments, or for payment of a penalty arising from an
audit exception. A local educational agency shall request a plan
within 90 days of receiving the final audit report or review, within
30 days of withdrawing or receiving a final determination regarding
an appeal pursuant to subdivision (d), or, in the absence of an
appeal pursuant to subdivision (d), within 30 days of withdrawing
or receiving a determination of a summary review pursuant to
subdivision (d) of Section 41344.1. At the time the local
educational agency is notified, the Controller also shall be notified
of the plan. The plan shall be established in accordance with the
following:

(1) The Controller shall withhold the disallowed or penalty
amount at the next principal apportionment or pursuant to
paragraph (2), unless subdivision (d) of this section or subdivision
(d) of Section 41344.1 applies, in which case the disallowed or
penalty amount shall be withheld, at the next principal
apportionment or pursuant to paragraph (2) following the
determination regarding the appeal or summary appeal. In
calculating a disallowed amount, the Controller shall determine
the total amount of overpayment received by the local educational
agency on the basis of average daily attendance, or other data,
reported by the local educational agency that did not comply with
one or more statutory or regulatory requirements that are conditions
of apportionment.

(2) If the Superintendent and the Director of Finance concur
that repayment of the full liability or payment of the penalty in the
current fiscal year would constitute a severe financial hardship for
the local educational agency, they may approve a plan of equal
annual payments over a period of up to eight years. The plan shall
include interest on each year’s outstanding balance at the rate
earned on the state’s Pooled Money Investment Account during
that year. The Superintendent and the Director of Finance jointly
shall establish this plan. The Controller shall withhold amounts
pursuant to the plan.

(3) If the Superintendent and the Director of Finance do not
jointly establish a plan, the Controller shall withhold the entire
disallowed amount determined pursuant to paragraph (1), or the
penalty amount, at the next principal apportionment.

(b) (1) For purposes of computing average daily attendance
pursuant to Section begin delete 42238.5, end delete begin insert 42238.05, end insert a local educational agency’s
prior fiscal year average daily attendance shall be reduced by an
amount equal to any average daily attendance disallowed in the
current year, by an audit or review, as defined in subdivision (e).

(2) Commencing with the 1999-2000 fiscal year, this
subdivision may not result in a local educational agency repaying
more than the value of the average daily attendance disallowed in
the audit exception plus interest and other penalties or reductions
in apportionments as provided by existing law.

(c) Notwithstanding any other law, this section may not be
waived under any authority set forth in this code except as provided
in this section or Section 41344.1.

(d) Within 60 days of the date on which a local educational
agency receives a final audit report resulting from an audit or
review of all or any part of the operations of the local educational
agency, or within 30 days of receiving a determination of a
summary review pursuant to subdivision (d) of Section 41344.1,
a local educational agency may appeal a finding contained in the
final report, pursuant to Section 41344.1. Within 90 days of the
date on which the appeal is received by the panel, a hearing shall
be held at which the local educational agency may present evidence
or arguments if the local educational agency believes that the final
report contains any finding that was based on errors of fact or
interpretation of law, or if the local educational agency believes
in good faith that it was in substantial compliance with all legal
requirements. A repayment schedule may not commence until the
panel reaches a determination regarding the appeal. If the panel
determines that the local educational agency is correct in its
assertion, in whole or in part, the allowable portion of any
apportionment payment that was withheld shall be paid at the next
principal apportionment.

(e) (1) As used in this section, “audit or review” means an audit
conducted by the Controller’s office, an annual audit conducted
by a certified public accountant or a public accounting firm
pursuant to Section 41020, and an audit or review conducted by a
governmental agency that provided the local educational agency
with an opportunity to provide a written response.

(2) As used in this section, “local educational agency” includes
a charter school.

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 41376 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

41376.  

begin delete The Superintendent of Public Instruction, end delete begin insert (a) end insert begin insert   end insert begin insert The
Superintendent, end insert in computing apportionments and allowances from
the State School Fund for the second principal apportionment,
shall determine the following for the regular day classes of the
elementary schools maintained by each school district:

begin delete

(a) For

end delete

begin insert (1) end insert begin insert   end insert begin insert (A) end insert begin insert   end insert begin insert For end insert grades 1 to 3, inclusive, begin delete he end delete begin insert the Superintendent end insert shall
determine the number of classes, the number of pupils enrolled in
each class, the total enrollment in all such classes, the average
number of pupils enrolled per class, and the total of the numbers
of pupils which are in excess of thirty (30) in each class.

begin delete

For

end delete

begin insert (B) end insert begin insert   end insert begin insert For end insert those begin insert school end insert districts begin delete which end delete begin insert that end insert do not have any classes
with an enrollment in excess of 32 and whose average size for all
the classes is 30.0 or less, there shall be no excess declared. For
those begin insert school end insert districts begin delete which end delete begin insert that end insert have one or more classes in excess
of an enrollment of 32 or whose average size for all the classes is
more than 30, the excess shall be the total of the number of pupils
which are in excess of 30 in each class having an enrollment of
more than 30.

begin delete

(b)

end delete

begin insert (2) end insert  For grades 4 to 8, inclusive, begin delete he end delete begin insert the Superintendent end insert shall
determine the total number of pupils enrolled, the number of
full-time equivalent classroom teachers, and the average number
of pupils per each full-time equivalent classroom teacher. begin delete He end delete begin insert The
Superintendent end insert shall also determine the excess if any, of pupils
enrolled in such grades in the following manner:

begin delete

(1)

end delete

begin insert (A) end insert  Determine the number of pupils by which the average
number of pupils per each full-time equivalent classroom teacher
for the current fiscal year exceeds the greater of the average number
of pupils per each full-time equivalent classroom teacher in all the
appropriate districts of the state, as determined by the
Superintendent begin delete of Public Instruction, end delete for October 30, 1964, or the
average number of pupils per each full-time equivalent classroom
teacher which existed in the begin insert school end insert district on either October 30,
1964 or March 30, 1964, as selected by the governing begin delete board. end delete begin insert board
of the school district. end insert

begin delete

(2)

end delete

begin insert (B) end insert  Multiply the number determined in begin delete (1) above end delete begin insert subparagraph
(A) end insert by the number of full-time equivalent classroom teachers of
the current fiscal year.

begin delete

(3)

end delete

begin insert (C) end insert  Reduce the number determined in begin delete (2) above end delete begin insert subparagraph
(B) end insert by the remainder begin delete which end delete begin insert that end insert results from dividing such number
by the average number of pupils per each full-time equivalent
teacher for October 30, 1964, as determined by the Superintendent
begin delete of Public Instruction in (1) above. end delete begin insert in subparagraph (A). end insert

begin delete

(c) He

end delete

begin insert (3) end insert begin insert   end insert begin insert The Superintendent end insert shall compute the product obtained by
multiplying the excess number of pupils, if any, begin delete under the
provisions of subdivision (a) of this section end delete begin insert in paragraph (1) end insert by
ninety-seven begin delete hundredths (0.97), and shall multiply the product so
obtained by the ratio of statewide change in average daily
attendance to district change in average daily attendance. Change
in average daily attendance shall be determined by dividing average
daily attendance in grades 1, 2 and 3 reported for purposes of the
first principal apportionment of the current year by that reported
for purposes of the first principal apportionment of the preceding
year. end delete begin insert hundredths. end insert

begin delete

(d)

end delete

begin insert (4) end insert  If the school district reports that it has maintained, during
the current fiscal year, any classes in which there were enrolled
pupils in excess of begin delete thirty (30) end delete begin insert 30 end insert per class pursuant to begin delete subdivision
(a) of this section, end delete begin insert paragraph (1), end insert and there is no excess number
of pupils computed pursuant to begin delete subdivision (b) of this section, he end delete
begin insert paragraph (2), the Superintendent end insert shall decrease the average daily
attendance reported under the provisions of Section 41601 by the
product determined begin delete under subdivision (c) of this section. end delete begin insert pursuant
to paragraph (3). end insert

begin delete

(e)

end delete

begin insert (5) end insert  If the school district reports that it has maintained, during
the current fiscal year, no classes in which there were enrolled
pupils in excess of begin delete thirty (30) end delete begin insert 30 end insert per class determined pursuant to
begin delete subdivision (a) of this section, end delete begin insert paragraph (1), end insert and there is an excess
number of pupils computed pursuant to begin delete subdivision (b) of this
section, he shall make the following computation: end delete begin insert paragraph (2),
the Superintendent shall compute the product obtained by
multiplying the excess number of pupils computed pursuant to
paragraph (2) by ninety-seven hundredths. The Superintendent
shall decrease the average daily attendance reported under the
provisions of Section 41601 by the resulting product. end insert

begin delete end delete begin delete

He shall compute the product obtained by multiplying the excess
number of pupils computed pursuant to subdivision (b) of this
section by ninety-seven hundredths (0.97) and shall multiply the
product so obtained by the ratio of statewide change in average
daily attendance to the district change in average daily attendance.
He shall decrease the average daily attendance reported under the
provisions of Section 41601 by the resulting product.

end delete begin delete end delete begin delete

(f)

end delete

begin insert (6) end insert  If the school district reports that it has maintained, during
the current fiscal year, any classes in which there were enrolled
pupils in excess of begin delete thirty (30) end delete begin insert 30 end insert per class determined pursuant to
begin delete subdivision (a) of this section, end delete begin insert paragraph (1), end insert and there is an excess
number of pupils computed pursuant to begin delete subdivision (b) of this
section, he shall make the following computation: end delete begin insert paragraph (2),
the Superintendent shall add to the product determined pursuant
to paragraph (3), the product determined pursuant to paragraph
(5), and shall decrease the average daily attendance reported
under the provisions of Section 41601 by this total amount. end insert

begin delete end delete begin delete

He shall add to the product determined under subdivision (c) of
this section, the product determined under subdivision (e) of this
section and decrease the average daily attendance reported under
the provisions of Section 41601 by this total amount.

end delete begin delete end delete

begin insert (b) end insert begin insert   end insert The governing board of each school district maintaining
elementary schools shall report for the fiscal year 1964-65 and
each year thereafter the information required for the determination
to be made by the Superintendent begin delete of Public Instruction under the
provisions of end delete begin insert pursuant to end insert this section in accordance with
instructions provided on forms furnished and prescribed by the
begin delete Superintendent of Public Instruction. end delete begin insert Superintendent. end insert Such
information shall be reported by the school district together with,
and at the same time as, the reports required to be filed for the
second principal apportionment of the State School Fund. The
forms on which the data and information is reported shall include
a certification by begin insert the superintendent of end insert each school district
begin delete superintendent end delete or begin insert its end insert chief administrative officer that the data is
correct and accurate for the period covered, according to his begin insert or
her end insert best information and belief.

begin insert (c) end insert begin insert   end insert For purposes of this section, a “full-time equivalent
classroom teacher” means an employee of an elementary, high
school, or unified school district, employed in a position requiring
certification qualifications and whose duties require him to teach
pupils in the elementary schools of that district in regular day
classes for the full time for which he is employed during the regular
schoolday. In reporting the total number of full-time equivalent
classroom teachers, there shall be included, in addition to those
employees defined above, the full-time equivalent of all fractional
time for which employees in positions requiring certification
qualifications are required to devote to teaching pupils in the
elementary schools of the district in regular day classes during the
regular schoolday.

begin insert (d) end insert begin insert   end insert For purposes of this section, the number of pupils enrolled
in each class means the average of the active enrollment in that
class on the last teaching day of each school month begin delete which ends
prior to April end delete begin insert that ends before April 15 end insert of each school year.

begin delete

The provisions of this section are not

end delete

begin insert (e) end insert begin insert   end insert begin insert This section shall not be end insert applicable to school districts with
less than 101 units of average daily attendance for the current fiscal
year.

begin delete end delete begin delete

Although no decreases in average daily attendance shall be made
for the fiscal year 1964-65, reports are required to be filed under
the provisions of this section, and the Superintendent of Public
Instruction shall notify each school district the amount of the
decrease in state allowances which would have been effected had
such decrease in average daily attendance been applied.

end delete begin delete end delete begin delete

The

end delete

begin insert (f) end insert begin insert   end insert begin insert The end insert Superintendent begin delete of Public Instruction end delete shall adopt rules
and regulations begin delete which he end delete begin insert that he or she end insert may deem necessary for
the effective administration of this section. begin delete Such end delete begin insert Those end insert rules and
regulations may specify that no decrease in average daily
attendance reported under the provisions of Section 41601 shall
be made for a school district on account of large classes due to
instructional television or team teaching, which may necessarily
involve class sizes at periods during the day larger than the standard
set forth in this section.

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Section 41376.1 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

41376.1.  

(a) Commencing with the 2013-14 fiscal year, until
the Superintendent determines that a school district is funded
pursuant to Section 42238.02 in the prior fiscal year, and
notwithstanding the requirement to decrease average daily
attendance pursuant to begin delete subdivisions (d), (e), and (f) end delete begin insert paragraphs
(4), (5), and (6) of subdivision (a) end insert of Section 41376 and subdivision
(e) of Section 41378, the Superintendent shall compute a reduction
to the school district local control funding formula entitlement
pursuant to Section 42238.02, as implemented by Section 42238.03,
for the specified school year by the sum of the following:

(1) (A) Multiply the sum of the products obtained in subdivision
(e) of Section 41378 and begin insert paragraph (4) of end insert subdivision begin delete (d) end delete begin insert (a) end insert of
Section 41376 by the grade span adjusted base grant specified in
subparagraph (A) of paragraph (1) of subdivision (d) of Section
42238.02, as annually adjusted for cost of living pursuant to
paragraph (2) of subdivision (d) of Section 42238.02.

(B) Multiply the product obtained in subparagraph (A) by the
sum of the entitlements computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) of Section 42238.03 and paragraph
(3) of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula
entitlements computed pursuant to Section 42238.02 for all school
districts.

(2) (A) Multiply the product obtained pursuant to begin insert paragraph
(5) of end insert subdivision begin delete (e) end delete begin insert (a) end insert of Section 41376 by the begin delete funded end delete average
daily attendance for grades 4 to 6, inclusive, reported by the school
district pursuant to Section begin delete 42238.05 end delete begin insert 41601 end insert for the specified school
year divided by the begin delete funded end delete average daily attendance for grades 4
to 8, inclusive, reported by the school district pursuant to Section
begin delete 42238.05 end delete begin insert 41601 end insert for the specified school year.

(B) Multiply the product obtained in subparagraph (A) by the
grade span adjusted base grant specified in subparagraph (B) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

(C) Multiply the product obtained in subparagraph (B) by the
sum of the entitlements computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) of Section 42238.03 and paragraph
(3) of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula
entitlements computed pursuant to Section 42238.02 for all school
districts.

(3) (A) Multiply the product obtained pursuant to begin insert paragraph
(5) of end insert subdivision begin delete (e) end delete begin insert (a) end insert of Section 41376 by the begin delete funded end delete average
daily attendance for grades 7 and 8 reported by the school district
pursuant to Section begin delete 42238.05 end delete begin insert 41601 end insert for the specified school year
divided by the begin delete funded end delete average daily attendance for grades 4 to 8,
inclusive, reported by the school district pursuant to Section
begin delete 42238.05 end delete begin insert 41601 end insert for the specified school year.

(B) Multiply the product obtained in subparagraph (A) by the
grade span adjusted base grant specified in subparagraph (C) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

(C) Multiply the product obtained in subparagraph (B) by the
sum of the entitlements computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) of Section 42238.03 and paragraph
(3) of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula
entitlements computed pursuant to Section 42238.02 for all school
districts.

(b) Commencing with the 2013-14 fiscal year, if the
Superintendent determines that a school district is funded pursuant
to Section 42238.02 in the prior fiscal year, and notwithstanding
the requirement to decrease average daily attendance pursuant to
begin delete subdivisions (d), (e), and (f) end delete begin insert paragraphs (4), (5), and (6) of
subdivision (a) end insert of Section 41376 and subdivision (e) of Section
41378, the Superintendent shall compute a reduction to the school
district local control funding formula entitlement pursuant to
Section 42238.02 for the specified school year by the sum of the
following:

(1) Multiply the sum of the products obtained in subdivision
(e) of Section 41378 and begin insert paragraph (4) of end insert subdivision begin delete (d) end delete begin insert (a) end insert of
Section 41376 by the grade span adjusted base grant specified in
subparagraph (A) of paragraph (1) of subdivision (d) of Section
42238.02, as annually adjusted for cost of living pursuant to
paragraph (2) of subdivision (d) of Section 42238.02.

(2) (A) Multiply the product obtained pursuant to begin insert paragraph
(5) of end insert subdivision begin delete (e) end delete begin insert (a) end insert of Section 41376 by the begin delete funded end delete average
daily attendance for grades 4 to 6, inclusive, reported by the school
district pursuant to Section begin delete 42238.05 end delete begin insert 41601 end insert for the specified school
year divided by the begin delete funded end delete average daily attendance for grades 4
to 8, inclusive, reported by the school district pursuant to Section
begin delete 42238.05 end delete begin insert 41601 end insert for the specified school year.

(B) Multiply the product obtained in subparagraph (A) by the
grade span adjusted base grant specified in subparagraph (B) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

(3) (A) Multiply the product obtained pursuant to begin insert paragraph
(5) of end insert subdivision begin delete (e) end delete begin insert (a) end insert of Section 41376 by the begin delete funded end delete average
daily attendance for grades 7 and 8 reported by the school district
pursuant to Section begin delete 42238.05 end delete begin insert 41601 end insert for the specified school year
divided by the begin delete funded end delete average daily attendance for grades 4 to 8,
inclusive, reported by the school district pursuant to Section
begin delete 42238.05 end delete begin insert 41601 end insert for the specified school year.

(B) Multiply the product obtained in subparagraph (A) by the
grade span adjusted base grant specified in subparagraph (C) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

begin insert

begin insert SEC. 42. end insert   

end insert

begin insert Section 41544 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

41544.  

(a) For a basic aid school district that was entitled to
reimbursement pursuant to begin insert former end insert Section 42247.4, as that section
read on January 1, 2001, and that received an apportionment
pursuant to subdivision (h) of begin insert former end insert Section 42247.4, as that
section read on January 1, 2001, because a court order directs
pupils to transfer to that school district as part of the court-ordered
voluntary pupil transfer program, the Superintendent, from the
2001-02 fiscal year to the 2012-13 fiscal year, inclusive, shall
calculate an apportionment of state funds for that basic aid school
district that provides 70 percent of the school district revenue limit
calculated pursuant to begin insert former end insert Section 42238, as that section read
on January 1, 2013, that would have been apportioned to the school
district from which the pupils were transferred for the average
daily attendance of any pupils credited under that court order who
did not attend the basic aid school district before the 1995-96 fiscal
year.

(b) (1) For a basic aid school district that was entitled to
reimbursement pursuant to begin insert former end insert Section 42247.4, as that section
read on January 1, 2001, and that received an apportionment
pursuant to subdivision (h) of begin insert former end insert Section 42247.4, as that
section read on January 1, 2001, because a court order directs
pupils to transfer to that school district as part of the court-ordered
voluntary pupil transfer program, the Superintendent, commencing
with the 2013-14 fiscal year, shall calculate an apportionment of
state funds for that basic aid school district that provides 70 percent
of the school district local control funding formula base grant
calculated pursuant to subdivision (d) of Section 42238.02, as
implemented by Section 42238.03, that would have been
apportioned to the school district from which the pupils were
transferred for the average daily attendance of any pupils credited
under that court order who did not attend the basic aid school
district before the 1995-96 fiscal year.

(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district from which the pupil or pupils
were transferred is funded pursuant to Section 42238.02 in the
prior fiscal year, the Superintendent shall apportion, for average
daily attendance credited pursuant to paragraph (1), begin insert the lesser of
the amount calculated pursuant to paragraph (1) or end insert 70 percent of
the sum of the entitlements for the school district from which the
pupil or pupils were transferred for the specified fiscal year as
computed pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a), and paragraph (3) of subdivision (b), of Section
42238.03, divided by the average daily attendance of that school
district for that fiscal year and then multiplied by the ratio of local
control begin insert funding end insert formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for that fiscal year computed pursuant to Section
42238.02.

(3) If the entitlements for the school district from which the
pupil or pupils were transferred computed pursuant to paragraphs
(1) to (4), inclusive, of subdivision (a), and paragraph (3) of
subdivision (b), of Section 42238.03, include funding calculated
pursuant to Article 4 (commencing with Section 42280) of Chapter
7 for a fiscal year, paragraph (2) shall not apply and the
apportionment of state funds for the average daily attendance
credited pursuant to this section for that fiscal year shall be
calculated pursuant to paragraph (1).

(c) For purposes of subdivision begin delete (b) of this section, end delete begin insert (b), end insert “basic
aid school district” means a school district that does not receive
from the state, for any fiscal year in which this section is applied,
an apportionment of state funds pursuant to subdivision (o) of
Section 42238.02.

begin insert

begin insert SEC. 43. end insert   

end insert

begin insert Section 41610 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

41610.  

(a) Notwithstanding any other provision of law,
commencing with the 1988-89 fiscal year any school district that
has discovered an error in the attendance accounting computer
program that has caused it to overstate its average daily attendance
is not required to amend its prior years’ reports, if the independent
audit for the 1987-88 fiscal year or any previous fiscal year did
not reveal the error.

Commencing with the 1989-90 fiscal year, no school district is
entitled to a declining enrollment adjustment under Section
42238.5, or any other provision, for a decline in average daily
attendance that is a result of an overstatement of the 1987-88 fiscal
year average daily attendance.

(b) Notwithstanding any other provision of law, any school
district that has experienced all of the following shall not have its
revenue limit apportionment adjusted for the 1988-89 fiscal year
or any prior fiscal year as a result of any attendance reporting error
occurring in the 1987-88 fiscal year or any prior fiscal year:

(1) The district has used an attendance accounting computer
system since the 1978-79 school year.

(2) The attendance accounting system has been audited during
the annual financial audit since the 1979-80 fiscal year and, despite
the annual audits, has been found to contain an error.

(3) The district has experienced declining enrollment from the
1987-88 fiscal year to the 1988-89 fiscal year.

(c) Any school district for which subdivision (b) is applicable
shall calculate its declining enrollment adjustment pursuant to
Section 42251 based upon the corrected average daily attendance
for the 1987-88 fiscal year rather than based upon the average
daily attendance originally reported for the 1987-88 fiscal year.

end delete

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Section 42127 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42127.  

(a) On or before July 1 of each year, the governing
board of each school district shall accomplish the following:

(1) Hold a public hearing conducted in accordance with Section
42103 on the budget to be adopted for the subsequent fiscal year.
The budget to be adopted shall be prepared in accordance with
Section 42126. The agenda for that hearing shall be posted at least
72 hours before the public hearing and shall include the location
where the budget will be available for public inspection.

(2) (A) Adopt a budget. Not later than five days after that
adoption or by July 1, whichever occurs first, the governing board
of the school district shall file that budget with the county
superintendent of schools. The budget and supporting data shall
be maintained and made available for public review. If the
governing board of the school district does not want all or a portion
of the property tax requirement levied for the purpose of making
payments for the interest and redemption charges on indebtedness
as described in paragraph (1) or (2) of subdivision (b) of Section
1 of Article XIII A of the California Constitution, the budget shall
include a statement of the amount or portion for which a levy shall
not be made. For the 2014-15 fiscal year and each fiscal year
thereafter, the governing board of the school district shall not adopt
a budget before the governing board of the school district adopts
a local control and accountability plan, if an existing local control
and accountability plan or annual update to a local control and
accountability plan is not effective for the budget year. The
governing board of a school district shall not adopt a budget that
does not include the expenditures necessary to implement the local
control and accountability plan or the annual update to a local
control and accountability plan that is effective for the budget year.

(B) Commencing with budgets adopted for the 2015-16 fiscal
year, the governing board of a school district that proposes to adopt
a begin delete budget, or revise a budget pursuant to subdivision (e), end delete begin insert budget end insert
that includes a combined assigned and unassigned ending fund
balance in excess of the minimum recommended reserve for
economic uncertainties adopted by the state board pursuant to
subdivision (a) of Section 33128, shall, at the public hearing held
pursuant to paragraph (1), provide all of the following for public
review and discussion:

(i) The minimum recommended reserve for economic
uncertainties for each fiscal year identified in the budget.

(ii) The combined assigned and unassigned ending fund balances
that are in excess of the minimum recommended reserve for
economic uncertainties for each fiscal year identified in the budget.

(iii) A statement of reasons that substantiates the need for an
assigned and unassigned ending fund balance that is in excess of
the minimum recommended reserve for economic uncertainties
for each fiscal year that the school district identifies an assigned
and unassigned ending fund balance that is in excess of the
minimum recommended reserve for economic uncertainties, as
identified pursuant to clause (ii).

(C) The governing board of a school district shall include the
information required pursuant to subparagraph (B) in its budgetary
submission each time it files an adopted or revised budget with
the county superintendent of schools. The information required
pursuant to subparagraph (B) shall be maintained and made
available for public review.

(b) The county superintendent of schools may accept changes
in any statement included in the budget, pursuant to subdivision
(a), of the amount or portion for which a property tax levy shall
not be made. The county superintendent of schools or the county
auditor shall compute the actual amounts to be levied on the
property tax rolls of the school district for purposes that exceed
apportionments to the school district pursuant to Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code. Each school district shall provide all
data needed by the county superintendent of schools or the county
auditor to compute the amounts. On or before August 15, the
county superintendent of schools shall transmit the amounts
computed to the county auditor who shall compute the tax rates
necessary to produce the amounts. On or before September 1, the
county auditor shall submit the rate computed to the board of
supervisors for adoption.

(c) The county superintendent of schools shall do all of the
following:

(1) Examine the adopted budget to determine whether it
complies with the standards and criteria adopted by the state board
pursuant to Section 33127 for application to final local educational
agency budgets. The county superintendent of schools shall
identify, if necessary, technical corrections that are required to be
made to bring the budget into compliance with those standards
and criteria.

(2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school district
to satisfy its multiyear financial commitments. In addition to his
or her own analysis of the budget of each school district, the county
superintendent of schools shall review and consider studies, reports,
evaluations, or audits of the school district that were commissioned
by the school district, the county superintendent of schools, the
Superintendent, and state control agencies and that contain
evidence that the school district is showing fiscal distress under
the standards and criteria adopted in Section 33127 or that contain
a finding by an external reviewer that more than 3 of the 15 most
common predictors of a school district needing intervention, as
determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district will meet
its current and future obligations and resolve any problems
identified in studies, reports, evaluations, or audits described in
this paragraph.

(3) Determine whether the adopted budget includes the
expenditures necessary to implement the local control and
accountability plan or annual update to the local control and
accountability plan approved by the county superintendent of
schools.

(4) Determine whether the adopted budget includes a combined
assigned and unassigned ending fund balance that exceeds the
minimum recommended reserve for economic uncertainties. If the
adopted budget includes a combined assigned and unassigned
ending fund balance that exceeds the minimum recommended
reserve for economic uncertainties, the county superintendent of
schools shall verify that the school district complied with the
requirements of subparagraphs (B) and (C) of paragraph (2) of
subdivision (a).

(d) (1) On or before begin delete August end delete begin insert September end insert 15, the county
superintendent of schools shall approve, conditionally approve, or
disapprove the adopted budget for each school district. For the
2014-15 fiscal year and each fiscal year thereafter, the county
superintendent of schools shall disapprove a budget if the county
superintendent of schools determines that the budget does not
include the expenditures necessary to implement a local control
and accountability plan or an annual update to the local control
and accountability plan approved by the county superintendent of
schools. If the governing board of a school district does not submit
a budget to the county superintendent of schools, the county
superintendent of schools shall develop, at school district expense,
a budget for that school district by September 15 and transmit that
budget to the governing board of the school district. The budget
prepared by the county superintendent of schools shall be deemed
adopted, unless the county superintendent of schools approves any
modifications made by the governing board of the school district.
The budget prepared by the county superintendent of schools shall
also comply with the requirements of subparagraph (B) of
paragraph (2) of subdivision (a). The approved budget shall be
used as a guide for the school district’s priorities. The
Superintendent shall review and certify the budget approved by
the county. If, pursuant to the review conducted pursuant to
subdivision (c), the county superintendent of schools determines
that the adopted budget for a school district does not satisfy
paragraph (1), (2), (3), or (4) of that subdivision, he or she shall
conditionally approve or disapprove the budget and, not later than
begin delete August end delete begin insert September end insert 15, transmit to the governing board of the school
district, in writing, his or her recommendations regarding revision
of the budget and the reasons for those recommendations,
including, but not limited to, the amounts of any budget
adjustments needed before he or she can approve that budget. The
county superintendent of schools may assign a fiscal adviser to
assist the school district to develop a budget in compliance with
those revisions. In addition, the county superintendent of schools
may appoint a committee to examine and comment on the
superintendent’s review and recommendations, subject to the
requirement that the committee report its findings to the county
superintendent of schools no later than begin delete August end delete begin insert September end insert 20.

(2)  Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget
shall not be adopted or approved by the county superintendent of
schools before a local control and accountability plan or update to
an existing local control and accountability plan for the budget
year is approved.

(3) If the adopted budget of a school district is conditionally
approved or disapproved pursuant to paragraph (1), on or before
begin delete September end delete begin insert October end insert 8, the governing board of the school district,
in conjunction with the county superintendent of schools, shall
review and respond to the recommendations of the county
superintendent of schools at a regular meeting of the governing
board of the school district. The response shall include any
revisions to the adopted budget and other proposed actions to be
taken, if any, as a result of those recommendations.

(e) On or before begin delete September end delete begin insert October end insert 22, the county
superintendent of schools shall provide a list to the Superintendent
identifying all school districts for which budgets may be
disapproved.

(f) (1) The county superintendent of schools shall examine the
revised budget as provided in paragraph (3) of subdivision (d) to
determine whether it (A) complies with the standards and criteria
adopted by the state board pursuant to Section 33127 for
application to final local educational agency budgets, (B) allows
the school district to meet its financial obligations during the fiscal
year, (C) satisfies all conditions established by the county
superintendent of schools in the case of a conditionally approved
budget, (D) is consistent with a financial plan that will enable the
school district to satisfy its multiyear financial commitments, and,
not later than begin delete October end delete begin insert November end insert 8, shall approve or disapprove
the revised budget, and (E) whether the revised budget complies
with the requirements of subparagraph (B) of paragraph (2) of
subdivision (a). If the county superintendent of schools disapproves
the budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board
of the school district and the county superintendent of schools
agree to waive the requirement that a budget review committee be
formed and the department approves the waiver after determining
that a budget review committee is not necessary. Upon the grant
of a waiver, the county superintendent of schools immediately has
the authority and responsibility provided in Section 42127.3. Upon
approving a waiver of the budget review committee, the department
shall ensure that a balanced budget is adopted for the school district
by begin delete November 30. end delete begin insert December 31. end insert If no budget is adopted by
begin delete November 30, end delete begin insert December 31, end insert the Superintendent may adopt a
budget for the school district. The Superintendent shall report to
the Legislature and the Director of Finance by begin delete December end delete begin insert January end insert
10 if any school district, including a school district that has received
a waiver of the budget review committee process, does not have
an adopted budget by begin delete November 30. end delete begin insert December 31. end insert This report
shall include the reasons why a budget has not been adopted by
the deadline, the steps being taken to finalize budget adoption, the
date the adopted budget is anticipated, and whether the
Superintendent has or will exercise his or her authority to adopt a
budget for the school district.

(2) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if the county superintendent of
schools disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the governing board of the school
district pursuant to Section 52070, the county superintendent of
schools shall not call for the formation of a budget review
committee pursuant to Section 42127.1.

(g) Not later than begin delete October end delete begin insert November end insert 8, the county
superintendent of schools shall submit a report to the
Superintendent identifying all school districts for which budgets
have been disapproved or budget review committees waived. The
report shall include a copy of the written response transmitted to
each of those school districts pursuant to paragraph (1) of
subdivision (d).

(h) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made
to its budget to reflect the funding made available by that Budget
Act.

(i) Any school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.

begin insert

begin insert SEC. 45. end insert   

end insert

begin insert Section 42127.1 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42127.1.  

(a) Pursuant to subdivision (g) or (i) of Section 42127,
upon the disapproval of a school district budget by the county
begin delete superintendent, end delete begin insert superintendent of schools, end insert the county
superintendent begin insert of schools end insert shall call for the formation of a budget
review committee unless the governing board of the school district
and the county superintendent of schools agree to waive the
requirement that a budget review committee be formed, and the
department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver,
the county superintendent has the authority and responsibility
provided to a budget review committee in Section 42127.3. Upon
approving a waiver of the budget review committee, the department
shall ensure that a balanced budget is adopted for the school district
by begin delete November 30. end delete begin insert December 31. end insert The Superintendent shall report
to the Legislature and the Director of Finance by begin delete December end delete
begin insert January end insert 10 if any district, including a begin insert school end insert district that has
received a waiver of the budget review committee process, does
not have an adopted budget by begin delete November 30. end delete begin insert December 31. end insert This
report shall include the reasons why a budget has not been adopted
by the deadline, the steps being taken to finalize budget adoption,
and the date the adopted budget is anticipated.

(b) The budget review committee shall be composed of three
persons selected by the governing board of the school district from
a list of candidates provided to the governing board begin insert of the school
district end insert by the begin delete Superintendent of Public Instruction. end delete begin insert Superintendent. end insert
The list of candidates shall be composed of persons who have
expertise in the management of a school district or county office
of education. Their experience shall include, but not be limited to,
the fiscal and educational aspects of local educational agency
management.

(c) Notwithstanding subdivision (b) or any other provision of
this article, with the approval of the Superintendent and the
governing board of the school district, the county superintendent
of schools may select and convene a regional review committee,
consisting of persons having the expertise described in that
subdivision. The regional review committee shall operate in place
of the budget review committee, in accordance with the provisions
of this article governing budget review committees.

(d) Members of the committee shall be reimbursed by the
department for their services and associated expenses while on
official business at rates established by the begin delete State Board of
Education. end delete begin insert state board. end insert

begin insert

begin insert SEC. 46. end insert   

end insert

begin insert Section 42127.2 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42127.2.  

(a) The governing board of a school district shall,
no later than five working days after the receipt of a candidate list
from the Superintendent begin delete of Public Instruction end delete pursuant to Section
42127.1, select a budget review committee, and the Superintendent
begin delete of Public Instruction end delete shall convene the committee no later than
five working days following that selection. If the governing board
begin insert of the school district end insert fails to select a committee within the period
of time permitted by this subdivision, the Superintendent begin delete of Public
Instruction end delete instead shall select and convene the budget review
committee no later than 10 working days after the district’s receipt
of the candidate list.

(b)  begin delete No later than October 31, end delete begin insert On or before November 30, end insert the
budget review committee shall review the proposed budget of the
district and the underlying fiscal policies of the begin insert school end insert district and
transmit to the Superintendent of Public Instruction, the county
superintendent of schools, and the governing board of the school
district either of the following:

(1) The recommendation that the school district budget be
approved.

(2) A report disapproving the school district budget and setting
forth recommendations for revisions to the school district budget
that would enable the district to meet its financial obligations both
in the current fiscal year and with regard to the district’s multiyear
financial commitments.

(c) The Superintendent begin delete of Public Instruction end delete may extend the
deadline set forth in subdivision (b) for a period of not more than
15 working days.

(d) The Superintendent begin delete of Public Instruction end delete shall establish
criteria and procedures governing the performance by budget
review committees of their duties begin delete under end delete begin insert pursuant to end insert this section.

(e) Upon request of the county superintendent of schools, the
Controller’s office may conduct an audit or review of the fiscal
condition of the school district in order to assist a budget review
committee or regional review committee for the purposes of this
section.

begin insert

begin insert SEC. 47. end insert   

end insert

begin insert Section 42127.3 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42127.3.  

(a) If the budget review committee established
pursuant to Sections 42127.1 and 42127.2 recommends approval
of the school district budget, the county superintendent of schools
shall accept the recommendation of the budget review committee
and approve the budget.

(b) If the budget review committee established pursuant to
Sections 42127.1 and 42127.2 disapproves the school district
budget, the begin delete school district governing board, end delete begin insert governing board of
the school district, end insert not later than five working days after receipt
of the report described in paragraph (2) of subdivision (b) of
Section 42127.2, may submit a response to the Superintendent,
including any revisions to the adopted final budget and any other
proposed actions to be taken as a result of the recommendations
of the budget review committee. Based upon the recommendations
of the budget review committee and any response to those
recommendations provided by the governing board of the school
district, the Superintendent shall either approve or disapprove the
budget. If the Superintendent disapproves the budget, he or she
shall notify the governing board of the school district in writing
of the reasons for that disapproval and, until the county
superintendent begin insert of schools end insert certifies the begin insert school end insert district’s first interim
report pursuant to Section 42131, the county superintendent of
schools shall do the following as necessary:

(1)  begin delete Not later than November 30, end delete begin insert On or before December 31, end insert
develop and adopt, in consultation with the Superintendent and
the governing board of the school district, a fiscal plan and budget
that will govern the district and will allow the district to meet its
financial obligations, both in the current fiscal year and with regard
to the district’s multiyear financial commitments. The
Superintendent may extend the date by which the county
superintendent of schools is required to develop and adopt a fiscal
plan and budget. The governing board of the school district shall
govern the operation of the begin insert school end insert district for the current fiscal
year in accordance with that adopted budget.

(2) Cancel purchase orders, prohibit the issuance of nonsalary
warrants, and otherwise stay or rescind any action that is
inconsistent with the budget adopted pursuant to paragraph (1).
The county superintendent of schools shall inform the governing
board of the school district in writing of his or her justification for
any exercise of authority under this paragraph.

(3) Monitor and review the operation of the school district.

(4) Determine the need for additional staff and may employ,
subject to approval by the Superintendent, short-term analytical
assistance or expertise to validate financial information if the
begin insert school end insert district staff does not have the expertise or staff.

(5) Require the school district to encumber all contracts and
other obligations, to prepare appropriate cashflow analyses and
monthly or quarterly budget revisions, and to appropriately record
all receivables and payables.

(6) Determine whether there are any financial problem areas
and may employ, subject to approval by the Superintendent, a
certified public accounting firm to investigate financial problem
areas.

(7) Withhold compensation of the members of the governing
board begin insert of the school district end insert and the begin delete district end delete superintendent begin insert of the
school district end insert for failure to provide requested financial
information. A forfeiture may be appealed to the Superintendent
pursuant to subdivision (b) of Section 42127.6.

(c) If, during the selection of the budget review committee or
during the committee’s review of the budget, an agreement is
reached between the governing board of the school district and the
county superintendent of schools, and the school district revises
its budget to comply with this agreement, the county superintendent
of schools shall approve the begin insert school end insert district budget and the budget
review committee selection, or its review of the budget, shall be
canceled.

(d) The school district shall pay 75 percent and the county office
of education shall pay 25 percent of the actual administrative
expenses incurred pursuant to subdivision (b), or costs associated
with improving the district’s financial management practices. The
Superintendent shall develop, and distribute to affected school
districts and county offices of education, advisory guidelines
regarding the appropriate amount of any fees charged pursuant to
this subdivision.

(e) This section shall not be construed to authorize the county
superintendent of schools to abrogate any provision of a collective
bargaining agreement that was entered into by a school district
prior to the date upon which the county superintendent of schools
disapproved the budget of the school district pursuant to
subdivision (b).

begin insert

begin insert SEC. 48. end insert   

end insert

begin insert Section 42127.8 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42127.8.  

(a) The governing board provided for in subdivision
(b) shall establish a unit to be known as the County Office Fiscal
Crisis and Management Assistance Team. The team shall consist
of persons having extensive experience in school district budgeting,
accounting, data processing, telecommunications, risk management,
food services, pupil transportation, purchasing and warehousing,
facilities maintenance and operation, and personnel administration,
organization, and staffing. The Superintendent may appoint one
employee of the department to serve on the unit. The unit shall be
operated under the immediate direction of an appropriate county
office of education selected jointly, in response to an application
process, by the Superintendent and the president of the state board
or his or her designee.

(b) The unit established under subdivision (a) shall be selected
and governed by a 25-member governing board consisting of one
representative chosen by the California County Superintendents
Educational Services Association from each of the 11 county
service regions designated by the association, 11 superintendents
of school districts chosen by the Association of California School
Administrators from each of the 11 county service regions, one
representative from the department chosen by the Superintendent,
the Chancellor of the California Community Colleges or his or her
designee, and one member of a community college district
governing board chosen by the chancellor. The governing board
of the County Office Fiscal Crisis and Management Assistance
Team shall select a county superintendent of schools to chair the
unit.

(c) (1) The Superintendent may request the unit to provide the
assistance described in subdivision (b) of Section 1624, Section
1630, subdivision (b) of Section 42127.3, subdivision (c) of Section
42127.6, begin insert and end insert Section 42127.9, and begin insert with the computation described
in end insert subdivision (a) of Section 42238.2, and to review the fiscal and
administrative condition of any county office of education, school
district, or charter school.

(2) A county superintendent of schools may request the unit to
review the fiscal or administrative condition of a school district
or charter school under his or her jurisdiction.

(3) The Board of Governors of the California Community
Colleges may request the unit to provide the assistance described
in Section 84041.

(d) In addition to the functions described in subdivision (c), the
unit shall do all of the following:

(1) Provide fiscal management assistance, at the request of any
school district, charter school, or county office of education, or,
pursuant to subdivision (g) of Section 84041, at the request of any
community college district. Each school district, charter school,
or county office of education receiving that assistance shall be
required to pay the onsite personnel costs and travel costs incurred
by the unit for that purpose, pursuant to rates determined by the
governing board established under subdivision (b). The governing
board annually shall distribute rate information to each school
district, charter school, and county office of education.

(2) Facilitate training for members of the governing board of
the school district, district and county superintendents, chief
financial officers within the district, and schoolsite personnel whose
primary responsibility is to address fiscal issues. Training services
shall emphasize efforts to improve fiscal accountability and expand
the fiscal competency of local agencies. The unit shall use state
professional associations, private organizations, and public agencies
to provide guidance, support, and the delivery of any training
services.

(3) Facilitate fiscal management training through the 11 county
service regions to county office of education staff to ensure that
they develop the technical skills necessary to perform their
fiduciary duties. The governing board established pursuant to
subdivision (b) shall determine the extent of the training that is
necessary to comply with this paragraph.

(4) Produce a training calendar, to be disseminated semiannually
to each county service region, that publicizes all of the fiscal
training services that are being offered at the local, regional, and
state levels.

(e) The governing board shall reserve not less than 25 percent,
nor more than 50 percent, of its revenues each year for expenditure
for the costs of contracts and professional services as management
assistance to school districts or county superintendents of schools
in which the board determines that a fiscal emergency exists.

(f) The governing board established under subdivision (b) may
levy an annual assessment against each county office of education
that elects to participate under this section in an amount not to
exceed twenty cents ($0.20) per unit of total average daily
attendance for all school districts within the county. The revenues
collected pursuant to that assessment shall be applied to the
expenses of the unit.

(g) The governing board established under subdivision (b) may
pay to the department, from any available funds, a reasonable
amount to reimburse the department for actual administrative
expenses incurred in the review of the budgets and fiscal conditions
of school districts, charter schools, and county superintendents of
schools.

(h) When employed as a fiscal adviser by the department
pursuant to Section 1630, employees of the unit established
pursuant to subdivision (a) shall be considered employees of the
department for purposes of errors and omissions liability insurance.

(i) (1) The unit shall request and review applications to establish
regional teams of education finance experts throughout the state.

(2) To the extent that funding is provided for purposes of this
subdivision in the annual Budget Act or through another
appropriation, regional teams selected by the Superintendent, in
consultation with the unit, shall provide training and technical
expertise to school districts, charter schools, and county offices of
education facing fiscal difficulties.

(3) The regional teams shall follow the standards and guidelines
of and remain under the general supervision of the governing board
established under subdivision (b).

(4) It is the intent of the Legislature that, to the extent possible,
the regional teams be distributed geographically throughout the
various regions of the state in order to provide timely, cost-effective
expertise to school districts, charter schools, county offices of
education, and community college districts throughout the state.

begin insert

begin insert SEC. 49. end insert   

end insert

begin insert Section 42238.01 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.01.  

For purposes of Section 42238.02, the following
definitions shall apply:

begin delete

(a) “Eligible for free or reduced-price meals” means determined
to meet federal income eligibility criteria or deemed to be
categorically eligible for free or reduced-price meals under the
National School Lunch Program, as described in Part 245 of Title
7 of the Code of Federal Regulations. A school participating in a
special assistance alternative authorized by Section 11(a)(1) of the
Richard B. Russell National School Lunch Act (Public Law
113-79), including Provision 2, Provision 3, or the Community
Eligibility Option, may establish a base year for purposes of the
local control funding formula by collecting household income data
to determine whether a student meets free and reduced-price meal
income eligibility criteria at least once every four years, if the
school determines free and reduced-price meal eligibility for each
new enrolled or disenrolled pupil between base year eligibility
determination collections. A school that uses the special assistance
alternative shall maintain information on each student’s income
eligibility status and annually submit information on that status in
the California Longitudinal Pupil Achievement Data System
pursuant to paragraph (2) of subdivision (b) of Section 42238.02
or subparagraph (A) of paragraph (3) of subdivision (b) of Section
2574, as applicable.

end delete begin insert

(a) “Eligible for free or reduced-price meals” means determined
to meet federal income eligibility criteria, either through
completing an application for the federal National School Lunch
Program or through an alternative household income data
collection form, or deemed to be categorically eligible for free or
reduced-price meals under the federal National School Lunch
Program, as described in Part 245 of Title 7 of the Code of Federal
Regulations.

end insert begin insert

(1) A school participating in a special assistance alternative
authorized by Section 11(a)(1) of the Richard B. Russell National
School Lunch Act (Public Law 113-79), including Provision 2,
Provision 3, or the Community Eligibility Provision, may establish
a base year for purposes of the local control funding formula by
determining the pupils at the school who are eligible for free or
reduced-price meals and using each pupil’s eligibility status in
that base year to report eligibility for up to each of the following
three school years. The school may include between base year
eligibility determinations, any newly enrolled pupils who are
determined to be eligible for free or reduced-price meals or any
current pupils found to be newly eligible for free or reduced-price
meals as identified through a local or state direct certification
match or another categorical designation.

end insert begin insert

(2) A school that uses the special assistance alternative shall
maintain information on each pupil’s eligibility status and annually
submit information on that status in the California Longitudinal
Pupil Achievement Data System pursuant to paragraph (2) of
subdivision (b) of Section 42238.02 or subparagraph (A) of
paragraph (3) of subdivision (b) of Section 2574, as applicable.

end insert begin insert

(3) For a pupil who transfers to a school using a special
assistance alternative and who is transferring between schools
within the same school district, documentation supporting
eligibility for that pupil for purposes of the local control funding
formula may be transferred from the pupil’s old school to the
pupil’s new school, as long as the documentation supporting
eligibility for that pupil is less than four years old and is updated
at least once every four years.

end insert

begin insert (4) end insert begin insert   end insert To the extent permitted by federal law, a school may choose
to establish a new base year for purposes of the begin insert federal end insert National
School Lunch Program at the same time the school establishes a
new base year for purposes of the local control funding formula.
A school may use begin insert federal end insert National School Lunch Program
application forms to collect household income data as permitted
under the begin insert federal end insert National School Lunch Program. If the use of
begin insert federal end insert National School Lunch Program application forms is not
permitted, a school shall use alternative begin insert household end insert income data
collection forms.

(5) An alternative household income data collection form shall
be confidential and shall not be shared by the school other than as
necessary for purposes of determining funding allocations under
the local control funding formula and for assessing the
accountability of that funding. An alternative household income
data collection form shall contain, at a minimum, all of the
following information:

begin insert

(A) Information sufficient to identify the pupil or pupils.

end insert begin insert

(B) Information sufficient to determine that the pupil or
household meets federal income eligibility criteria sufficient to
qualify for either a free or reduced-priced meal under the Richard
B. Russell National School Lunch Act (Public Law 113-79).

end insert begin insert

(C) Certification that the information is true and correct by the
pupil’s adult household member.

end insert begin insert

(6) Paragraphs (1) and (3) are effective commencing with the
2014-15 fiscal year.

end insert

(b) “Foster youth” means any of the following:

(1) A child who is the subject of a petition filed pursuant to
Section 300 of the Welfare and Institutions Code, whether or not
the child has been removed from his or her home by the juvenile
court pursuant to Section 319 or 361 of the Welfare and Institutions
Code.

(2) A child who is the subject of a petition filed pursuant to
Section 602 of the Welfare and Institutions Code, has been
removed from his or her home by the juvenile court pursuant to
Section 727 of the Welfare and Institutions Code, and is in foster
care as defined by subdivision (d) of Section 727.4 of the Welfare
and Institutions Code.

(3) A nonminor under the transition jurisdiction of the juvenile
court, as described in Section 450 of the Welfare and Institutions
Code, who satisfies all of the following criteria:

(A) He or she has attained 18 years of age while under an order
of foster care placement by the juvenile court, and is not more than
19 years of age on or after January 1, 2012, not more than 20 years
of age on or after January 1, 2013, and not more than 21 years of
age, on or after January 1, 2014, and as described in Section
10103.5 of the Welfare and Institutions Code.

(B) He or she is in foster care under the placement and care
responsibility of the county welfare department, county probation
department, Indian tribe, consortium of tribes, or tribal organization
that entered into an agreement pursuant to Section 10553.1 of the
Welfare and Institutions Code.

(C) He or she is participating in a transitional independent living
case plan pursuant to Section 475(8) of the federal Social Security
Act (42 U.S.C. Sec. begin delete 675(8)), end delete begin insert 675), end insert as contained in the federal
Fostering Connections to Success and Increasing Adoptions Act
of 2008 (Public Law 110-351), as described in Section 11403 of
the Welfare and Institutions Code.

(c) “Pupils of limited English proficiency” means pupils who
do not have the clearly developed English language skills of
comprehension, speaking, reading, and writing necessary to receive
instruction only in English at a level substantially equivalent to
pupils of the same age or grade whose primary language is English.
“English learner” shall have the same meaning as begin delete is end delete provided for
in subdivision (a) of Section 306 and as “pupils of limited English
proficiency.”

begin insert

begin insert SEC. 50. end insert   

end insert

begin insert Section 42238.4 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.4.  

(a) For the 1995-96 fiscal year, the county
superintendent of schools shall compute an equalization adjustment
for each school district in the county, so that no district’s base
revenue limit per unit of average daily attendance is less than the
prior fiscal year statewide average base revenue limit for the
appropriate size and type of district listed in subdivision (b) plus
the inflation adjustment specified in Section 42238.1 for the current
fiscal year for the appropriate type of district.

For purposes of this section, the district base revenue limit and
the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.

(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

 

District	ADA
Elementary	less than 101
Elementary	more than 100
High School	less than 301
High School	more than 300
Unified	less than 1,501
Unified	more than 1,500

 

(c) The Superintendent shall compute a revenue limit
equalization adjustment for each school district’s base revenue
limit per unit of average daily attendance as follows:

(1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a)
and the average daily attendance used to calculate the district’s
revenue limit for the current fiscal year as adjusted for the deficit
factor in Section 42238.145.

(2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).

(3) Multiply the amount computed for the school district
pursuant to subdivision (a) by the amount computed pursuant to
paragraph (2).

(d) For the purposes of this section, the 1994-95 statewide
average base revenue limits determined for the purposes of
subdivision (a) and the fraction computed pursuant to paragraph
(2) of subdivision (c) by the Superintendent for the 1995-96 second
principal apportionment shall be final, and shall not be calculated
as subsequent apportionments. In no event shall the fraction
computed pursuant to paragraph (2) of subdivision (c) exceed 1.00.
For the purposes of determining the size of a district used in
subdivision (b), the Superintendent shall use a school district’s
revenue limit average daily attendance for the 1994-95 fiscal year
determined pursuant to Section 42238.5 and Article 4 (commencing
with Section 42280).

(e) This section shall only be operative if the Director of Finance
certifies that a settlement agreement in California Teachers
Association v. Gould (Sacramento County Superior Court Case
CV 373415) is effective. No funds shall be disbursed under this
section for this purpose before August 1, 1996, and any
apportionment or allocation of funds appropriated for purposes of
this section shall be accounted for in the 1995-96 fiscal year.

(f) Appropriations for the 1995-96 fiscal year as a result of the
implementation of this section shall be deemed “General Fund
revenues appropriated for school districts,” as defined in
subdivision (c) of Section 41202, for the 1995-96 fiscal year and
“total allocations to school districts and community college districts
from General Fund proceeds of taxes appropriated to Article
XIII B,” as defined in subdivision (e) of Section 41202, for that
fiscal year, for purposes of Section 8 of Article XVI of the
California Constitution.

end delete

begin insert

begin insert SEC. 51. end insert   

end insert

begin insert Section 42238.41 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.41.  

(a) For the 1996-97 fiscal year, the county
superintendent of schools, in conjunction with the Superintendent
of Public Instruction, shall compute an equalization adjustment
for each school district in the county, so that no district’s 1995-96
base revenue limit per unit of average daily attendance is less than
the 1995-96 fiscal year statewide average base revenue limit for
the appropriate size and type of district listed in subdivision (b).

For purposes of this section, the district base revenue limit and
the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.

(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

 

District	ADA
Elementary	less than 101
Elementary	more than 100
High School	less than 301
High School	more than 300
Unified	less than 1,501
Unified	more than 1,500

 

(c) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district’s
base revenue limit per unit of average daily attendance as follows:

(1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a)
and the average daily attendance used to calculate the district’s
revenue limit for the current fiscal year as adjusted for the deficit
factor in Section 42238.145.

(2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).

(3) Multiply the amount computed for the school district
pursuant to subdivision (a) by the amount computed pursuant to
paragraph (2).

(d) For the purposes of this section, the 1995-96 statewide
average base revenue limits determined for the purposes of
subdivision (a) and the fraction computed pursuant to paragraph
(2) of subdivision (c) by the Superintendent of Public Instruction
for the 1995-96 second principal apportionment shall be final, and
shall not be recalculated at subsequent apportionments. In no event
shall the fraction computed pursuant to paragraph (2) of subdivision
(c) exceed 1.00. For the purposes of determining the size of a
district used in subdivision (b), county superintendents of schools,
in conjunction with the Superintendent of Public Instruction, shall
use a school district’s revenue limit average daily attendance for
the 1995-96 fiscal year as determined pursuant to Section 42238.5
and Article 4 (commencing with Section 42280).

end delete

begin insert

begin insert SEC. 52. end insert   

end insert

begin insert Section 42238.42 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.42.  

(a) In the event that the amount required to be
appropriated for the purpose of the state’s minimum funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution
for the 1996-97 fiscal year, as determined in paragraph (1) of
subdivision (b), exceeds the amount appropriated for that purpose
for the 1996-97 fiscal year, as determined pursuant to paragraph
(2) of subdivision (b), the amount computed pursuant to subdivision
(d), is hereby appropriated from the General Fund to the
Superintendent of Public Instruction for the purposes of equalizing
the revenue limits of school districts pursuant to subdivision (e)
and Section 42238.43 and for the purpose of reducing the deficit
factor applied to the revenue limits of county superintendents of
schools pursuant to Section 2558.45 and reducing the deficit factor
applied to the revenue limits of the school districts pursuant to
Section 42238.145.

(b) To determine the amounts available for the purposes of this
section, the Department of Finance shall make the following
computations:

(1) At the first principal apportionment for the 1997-98 fiscal
year, compute the level of General Fund revenues that meets the
state’s minimum funding obligation to school districts and
community college districts pursuant to Section 8 of Article XVI
of the California Constitution for the 1996-97 fiscal year based
upon the most current determination of data as defined in
subdivision (a) of Section 41206 of the Education Code.

(2) Subtract from the amount determined in paragraph (1) an
amount equal to the total amount of General Fund revenues that
have been appropriated for the purpose of meeting the state’s
minimum funding obligation for the 1996-97 fiscal year to school
districts and community college districts pursuant to Section 8 of
Article XVI of the California Constitution as of February 1, 1998.

(3) If the amount computed in paragraph (2) is greater than zero,
that amount is the total amount available for the purposes of this
section.

(c) To determine the portion of the amount computed in
subdivision (a) to set aside for community college districts pursuant
to this section, the Department of Finance shall make the following
computations:

(1) Add the total General Fund allocations to school districts
and community college districts for the purposes of meeting the
state’s minimum funding obligation to school districts and
community college districts pursuant to Section 8 of Article XVI
of the California Constitution for the 1996-97 fiscal year to the
total statewide amount of “allocated local proceeds of taxes,” as
defined in subdivisions (g) and (h) of Section 41202, allocated to
school districts and community college districts for the 1996-97
fiscal year.

(2) Divide the sum of the General Fund allocations made to
community college districts for the purposes of meeting the state’s
minimum funding obligation to community college districts
pursuant to Section 8 of Article XVI of the California Constitution
for the 1996-97 fiscal year and the total statewide amount of
“allocated local proceeds of taxes,” as defined in subdivision (h)
of Section 41202, allocated to community college districts for the
1996-97 fiscal year by the sum computed pursuant to paragraph
(1).

(3) Multiply the amount computed pursuant to subdivision (b)
by the percentage determined in paragraph (2). Community college
districts shall be entitled to receive an amount equal to the amount
computed pursuant to this paragraph and that amount shall be set
aside from the General Fund for appropriation to community
college districts by the Legislature.

(d) The amount of the appropriation made pursuant to
subdivision (a) of this section shall be computed by subtracting
the amount computed in paragraph (3) of subdivision (c) from the
amount computed pursuant to subdivision (b). The Director of the
Department of Finance shall certify to the Controller the amount
of the appropriation computed pursuant to this subdivision and
under no circumstances shall funds be released by the Controller
for purposes of this section before that certification is received by
the Controller.

(e) The Superintendent of Public Instruction shall allocate 50
percent of the amount computed pursuant to subdivision (d) to
school districts for the purpose of making equalization adjustments
to the base revenue limit of school districts for the 1996-97 fiscal
year, as follows:

(1) The Superintendent of Public Instruction shall perform the
computations set forth in Section 42238.43 for the purpose of
equalization adjustments to the base revenue limits of school
districts for the 1996-97 fiscal year to determine the amount to
allocate to each school district pursuant to this paragraph.

(2) The Superintendent of Public Instruction shall repeat the
process of computing equalization adjustments to the base revenue
limits of school districts for the 1996-97 fiscal year pursuant to
Section 42238.43 until the total amount of funds available for that
purpose pursuant to this subdivision is allocated to school districts.

(3) If the total amount of funds available for allocation pursuant
to this subdivision is insufficient to fully fund the amounts
computed pursuant to paragraph (1) or the amount computed
pursuant to any of the iterations made pursuant to paragraph (2),
the allocations computed pursuant to those paragraphs shall be
reduced proportionately.

(f) The Superintendent of Public Instruction shall allocate 50
percent of the amount computed pursuant to subdivision (d) to
county superintendents of schools for the purpose of reducing the
1996-97 and 1997-98 deficit factors applied to the revenue limits
of county superintendent of schools and school districts pursuant
to Sections 2558.45 and 42238.145, respectively. The amount of
the allocation made to each school district and county
superintendent of schools for the purpose of reducing their
respective deficit factors shall be computed in proportion to their
respective shares of the total statewide amount of the revenue
limits after adjustment for deficit factors for school districts and
county superintendents of schools.

(g) In no event shall this section be construed to require an
appropriation that would cause the aggregate amount required to
be appropriated from the General Fund for the 1996-97 fiscal year
pursuant to Section 8 of Article XVI of the California Constitution
to be exceeded.

end delete

begin insert

begin insert SEC. 53. end insert   

end insert

begin insert Section 42238.43 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.43.  

(a) (1) For the 1996-97 fiscal year, the county
superintendent of schools, in conjunction with the Superintendent
of Public Instruction, shall compute an equalization adjustment
for each school district in the county, so that no district’s base
revenue limit per unit of average daily attendance is less than the
1996-97 fiscal year statewide average base revenue limit for the
appropriate size and type of district listed in subdivision (b).

(2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.

(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

 

District		ADA
Elementary		less than 101
Elementary		more than 100
High School		less than 301
High School		more than 300
Unified		less than 1,501
Unified		more than 1,500

 

(c) The equalization adjustment computed pursuant to this
section shall only be funded from amounts appropriated for that
purpose pursuant to Section 42238.42.

(d) (1) For the purposes of the computation made pursuant to
paragraph (1) of subdivision (e) of Section 42238.42, the 1996-97
statewide average base revenue limits determined for the purposes
of subdivision (a) and the fraction, if any, computed pursuant to
paragraph (3) of subdivision (e) of Section 42238.42 by the
Superintendent of Public Instruction for the 1996-97 second
principal apportionment shall be final, and shall not be calculated
as subsequent apportionments. In no event shall the fraction
computed pursuant to paragraph (3) of subdivision (e) of Section
42238.42 exceed 1.00. If any iterations are required pursuant to
paragraph (2) of Section 42238.42, the Superintendent of Public
Instruction shall recompute the 1996-97 statewide average base
revenue limit to include any adjustments made by the immediately
preceding iteration.

(2) (A) For the purposes of determining the size of a school
district under subdivision (b), the Superintendent of Public
Instruction shall use a school district’s revenue limit average daily
attendance for the 1996-97 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).

(B) Notwithstanding subparagraph (A), for the purposes of
determining the size of a school district under subdivision (b) with
respect to any elementary, high, or unified school district that was
funded in the 1996-97 school year as a large elementary, high, or
unified school district, as determined pursuant to subdivision (a)
of Section 42238.5, the school district’s actual revenue limit
average daily attendance for the 1996-97 school year may be used.
The actual revenue limit average daily attendance for the 1996-97
school year shall be used to calculate the 1996-97 revenue limit
of a school district exercising the authority granted under this
subparagraph. The governing board of a school district to which
this subparagraph is applicable may exercise the authority granted
under this subparagraph by enacting a resolution to that effect and
transmitting a copy of that resolution to the Superintendent of
Public Instruction on or before a date designated by the
Superintendent of Public Instruction for that school year. After the
Superintendent of Public Instruction receives the resolution, the
superintendent shall make the necessary adjustments to the school
district’s revenue limit calculation.

end delete

begin insert

begin insert SEC. 54. end insert   

end insert

begin insert Section 42238.44 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.44.  

(a) This section shall be known and may be cited
as, the Fairness in Education Funding Act.

(b) (1) For the 2004-05 fiscal year, the Superintendent of Public
Instruction shall compute an equalization adjustment for each
school district, so that the 2003-04 base revenue limit per unit of
average daily attendance of a district is not less than the 2003-04
base revenue limit per unit of average daily attendance above which
fall not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (c).

(2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.

(c) Subdivision (b) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

 

District	ADA
Elementary	less than 101
Elementary	more than 100
High School	less than 301
High School	more than 300
Unified	less than 1,501
Unified	more than 1,500

 

(d) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district’s
base revenue limit per unit of average daily attendance as follows:

(1) Multiply the amount computed for each school district
pursuant to subdivision (b) by the average daily attendance used
to calculate the revenue limit for the 2004-05 fiscal year of a
district.

(2) Divide the amount appropriated for purposes of this section
for the 2004-05 fiscal year by the statewide sum of the amount
computed pursuant to paragraph (1).

(3) Multiply the amount computed for the school district
pursuant to paragraph (1) of subdivision (b) by the amount
computed pursuant to paragraph (2).

(e) (1) For the purposes of this section, the 2003-04 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (b), and the fraction computed pursuant to
paragraph (2) of subdivision (d) for the 2003-04 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (d) shall not, under any circumstances,
exceed 1.00. For purposes of determining the size of a school
district pursuant to subdivision (c), county superintendents of
schools, in conjunction with the Superintendent of Public
Instruction, shall use school district revenue limit average daily
attendance for the 2003-04 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).

(2) For the purposes of calculating the size of a school district
pursuant to subdivision (c), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter school
for which the school district is the chartering agency.

(3) For the purposes of computing the target amounts pursuant
to subdivision (b), the Superintendent of Public Instruction shall
count all charter school average daily attendance toward the
average daily attendance of the school district that is the chartering
agency.

end delete

begin insert

begin insert SEC. 55. end insert   

end insert

begin insert Section 42238.445 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.445.  

(a) (1) For the 2002-03 fiscal year, the
Superintendent of Public Instruction shall compute an equalization
adjustment for each school district by determining the amount that
would be necessary to assure that no district’s 2001-02 base
revenue limit per unit of average daily attendance is less than the
2001-02 base revenue limit per unit of average daily attendance
above which fall not more than 10 percent of the total statewide
units of average daily attendance for each category of school
district set forth in subdivision (b).

(2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.

(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

 

District	ADA
Elementary	less than 101
Elementary	more than 100
High School	less than 301
High School	more than 300
Unified	less than 1,501
Unified	more than 1,500

 

(c) The Superintendent of Public Instruction shall determine
and allocate, on a one-time basis, an amount for each school district
as follows:

(1) Multiply the amount computed for each school district
pursuant to subdivision (a) by the average daily attendance used
to calculate the district’s revenue limit for the 2002-03 fiscal year.

(2) Divide forty-two million dollars ($42,000,000) appropriated
pursuant to Provision 2 of Item 6110-223-0001 of Section 2.00 of
the Budget Act of 2002 by the statewide sum of the amount
computed pursuant to paragraph (1).

(3) Multiply the amount computed for the school district
pursuant to paragraph (1) by the amount computed pursuant to
paragraph (2).

(d) (1) For the purposes of this section, the 2001-02 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2001-02 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not, under any circumstances,
exceed 1.00. For purposes of determining the size of a school
district pursuant to subdivision (b), county superintendents of
schools, in conjunction with the Superintendent of Public
Instruction, shall use school district revenue limit average daily
attendance for the 2001-02 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).

(2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter school
for which the school district is the chartering agency.

(3) For the purposes of computing the target amounts pursuant
to subdivision (a), the Superintendent of Public Instruction shall
count all charter school average daily attendance toward the
average daily attendance of the school district that is the chartering
agency.

(e) Allocations pursuant to this section do not represent
adjustments to school district base revenue limits.

end delete

begin insert

begin insert SEC. 56. end insert   

end insert

begin insert Section 42238.45 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.45.  

(a) (1) For the 2001-02 fiscal year, the
Superintendent of Public Instruction shall compute an adjustment
for each school district, so that no district’s 2000-01 base revenue
limit per unit of average daily attendance is less than the 2000-01
base revenue limit per unit of average daily attendance above which
fall not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).

(2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.

(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

 

District	ADA
Elementary	less than 101
Elementary	more than 100
High School	less than 301
High School	more than 300
Unified	less than 1,501
Unified	more than 1,500

 

(c) For the 2001-02 fiscal year, the Superintendent of Public
Instruction shall determine and allocate on a one-time basis for
each school district amounts as follows:

(1) Multiply the amount computed for each school district
pursuant to subdivision (a) by the average daily attendance used
to calculate the district’s revenue limit for the 2001-02 fiscal year.

(2) Divide forty million dollars ($40,000,000) appropriated for
purposes of this section for the 2001-02 fiscal year by the statewide
sum of the amount computed pursuant to paragraph (1).

(3) Multiply the amount computed for the school district
pursuant to paragraph (1) of subdivision (a) by the amount
computed pursuant to paragraph (2).

(d) (1) For the purposes of calculating the size of a school
district pursuant to subdivision (b), the Superintendent of Public
Instruction shall include units of average daily attendance of any
charter school for which the school district is the chartering agency.

(2) For the purposes of computing the target amounts pursuant
to subdivision (a), the Superintendent of Public Instruction shall
count all charter school average daily attendance toward the
average daily attendance of the school district that is the chartering
agency.

(e) Allocations for purposes of this section do not represent
adjustments to school district base revenue limits.

end delete

begin insert

begin insert SEC. 57. end insert   

end insert

begin insert Section 42238.46 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.46.  

(a) For the 2003-04 fiscal year, the Superintendent
of Public Instruction shall compute an equalization adjustment for
each school district so that no district’s 2002-03 adjusted base
revenue limit per unit of average daily attendance is less than the
2002-03 fiscal year adjusted base revenue limit above which fall
not more that 8.25 percent of the total statewide units of average
daily attendance for the appropriate size and type of district listed
in subdivision (b).

For purposes of this section, the district adjusted base revenue
limit and the statewide average adjusted base revenue limit may
not include any amounts attributable to Section 45023.4, 46200,
or 46201.

(b) Subdivision (a) applies to the following school districts,
which shall be grouped according to size and type as follows:

 

District	ADA
Elementary	less than 101
Elementary	more than 100
High School	less than 301
High School	more than 300
Unified	less than 1,501
Unified	more than 1,500

 

(c) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district’s
adjusted base revenue limit per unit of average daily attendance
as follows:

(1) Add the products of the amount computed for each school
district by the county superintendent pursuant to subdivision (a)
and the average daily attendance used to calculate the district’s
revenue limit for the current fiscal year.

(2) Divide the amount appropriated for purposes of this section
for the current fiscal year by the amount computed pursuant to
paragraph (1).

(3) Multiply the amount computed for the school district
pursuant to subdivision (a) by the amount computed pursuant to
paragraph (2).

(d) (1) For purposes of this section only, prior to computing
the equalization adjustment pursuant to this section, the
Superintendent of Public Instruction shall calculate an adjusted
base revenue limit for each district by revising the 2002-03 base
revenue limit of the district to eliminate that portion of the one-time
adjustment to its base revenue limit related to excused absences
made pursuant to Section 42238.8.

(2) For the purposes of this section, the 2002-03 statewide
average adjusted base revenue limits determined for the purposes
of subdivision (a) and the fraction computed pursuant to paragraph
(2) of subdivision (c) by the Superintendent of Public Instruction
for the 2002-03 second principal apportionment shall be final, and
shall not be recalculated at subsequent apportionments. In no event
shall the fraction computed pursuant to paragraph (2) of subdivision
(c) exceed 1.00. For the purposes of determining the size of a
district used in subdivision (b), county superintendents of schools,
in conjunction with the Superintendent of Public Instruction, shall
use a school district’s revenue limit average daily attendance for
the 2002-03 fiscal year as determined pursuant to Section 42238.5
and Article 4 (commencing with Section 42280).

(3) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter school
for which the school district is the chartering agency.

(4) For the purposes of computing the target amounts pursuant
to subdivision (a), the Superintendent of Public Instruction shall
count all charter school average daily attendance towards the
average daily attendance of the school district that is the chartering
agency.

end delete

begin insert

begin insert SEC. 58. end insert   

end insert

begin insert Section 42238.48 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.48.  

(a) (1) For the 2006-07 fiscal year, the
Superintendent shall compute an equalization adjustment for each
school district, so that the 2005-06 base revenue limit per unit
average daily attendance of a school district is not less than the
2005-06 base revenue limit per unit of average daily attendance
above which fall not more than 10 percent of the total statewide
units of average daily attendance for each category of school
district set forth in subdivision (b).

(2) For purposes of this section, the base revenue limit shall not
include any amounts attributable to Section 45023.4, 46200, or
46201.

(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

 

District	ADA
Elementary	less than 101
Elementary	more than 100
High School	less than 301
High School	more than 300
Unified	less than 1,501
Unified	more than 1,500

 

(c) The Superintendent shall compute a revenue limit
equalization adjustment for each school district’s base revenue
limit per unit of average daily attendance as follows:

(1) Multiply the amount computed for each school district
pursuant to subdivision (a) by the average daily attendance used
to calculate the revenue limit for the 2006-07 fiscal year of a school
district.

(2) Divide the amount appropriated for purposes of this section
for the 2006-07 fiscal year by the statewide sum of the amount
computed pursuant to paragraph (1).

(3) Multiply the amount computed for the school district
pursuant to paragraph (1) of subdivision (a) by the amount
computed pursuant to paragraph (2).

(d) (1) For the purposes of this section, the 2005-06 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2005-06 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
of determining the size of a school district pursuant to subdivision
(b), county superintendents of schools, in conjunction with the
Superintendent, shall use school district revenue limit average
daily attendance for the 2005-06 fiscal year as determined pursuant
to Section 42238.5 and Article 4 (commencing with Section
42280).

(2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent shall include units
of average daily attendance of any charter school for which the
school district is the sponsoring local educational agency.

(3) For the purposes of computing the target amounts pursuant
to subdivision (a), the Superintendent shall count all charter school
average daily attendance toward the average daily attendance of
the school district that is the sponsoring local educational agency.

end delete

begin insert

begin insert SEC. 59. end insert   

end insert

begin insert Section 42238.485 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.485.  

(a) For the 2010-11 fiscal year, the Superintendent
shall compute an adjustment for each school district by dividing
each school district’s 2007-08 fiscal year average daily attendance
into the sum of the following:

(1) Funding for Meals for Needy Pupils programs received by
the school district for the 2007-08 fiscal year pursuant to Section
42241.2, as it read on January 1, 2009.

(2) Funding incentives to increase beginning teachers’ salaries
received by the school district for the 2007-08 fiscal year pursuant
to Sections 45023.1 and 45023.4, as those sections read on January
1, 2009.

(b) For purposes of this section, average daily attendance shall
be computed pursuant to Section 42238.5.

(c) Notwithstanding any other provision of this section, no
funding specified in this section shall be added to the adjustment
computed pursuant to subdivision (a) if that funding is currently
included in a school district’s base revenue limit calculated
pursuant to Section 42238.

end delete

begin insert

begin insert SEC. 60. end insert   

end insert

begin insert Section 42238.49 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.49.  

(a) (1) For the 2011-12 fiscal year, the
Superintendent shall compute an equalization adjustment for each
school district, so that the 2010-11 base revenue limit per unit of
average daily attendance of a school district is not less than the
2010-11 base revenue limit per unit of average daily attendance
above which fall not more than 10 percent of the total statewide
units of average daily attendance for each category of school
district set forth in subdivision (b).

(2) For purposes of this section, the base revenue limit shall not
include any amounts attributable to Section 45023.4, 46200, or
46201.

(b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:

 

District	ADA
Elementary	less than 101
Elementary	more than 100
High School	less than 301
High School	more than 300
Unified	less than 1,501
Unified	more than 1,500

 

(c) The Superintendent shall compute a revenue limit
equalization adjustment for each school district’s base revenue
limit per unit of average daily attendance as follows:

(1) Multiply the amount computed for each school district
pursuant to subdivision (a) by the average daily attendance used
to calculate the revenue limit for the 2011-12 fiscal year of a school
district.

(2) Divide the amount appropriated from the Supplemental
Education Payment Account for purposes of this section for the
2011-12 fiscal year by the statewide sum of the amounts computed
pursuant to paragraph (1).

(3) Multiply the amount computed for the school district
pursuant to paragraph (1) of subdivision (a) by the amount
computed pursuant to paragraph (2).

(d) (1) For the purposes of this section, the 2010-11 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2010-11 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
of determining the size of a school district pursuant to subdivision
(b), county superintendents of schools, in conjunction with the
Superintendent, shall use school district revenue limit average
daily attendance for the 2010-11 fiscal year as determined pursuant
to Section 42238.5 and Article 4 (commencing with Section
42280).

(2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent shall include units
of average daily attendance of any charter school for which the
school district is the sponsoring local educational agency.

(3) For the purposes of computing the target amounts pursuant
to subdivision (a), the Superintendent shall count all charter school
average daily attendance toward the average daily attendance of
the school district that is the sponsoring local educational agency.

end delete

begin insert

begin insert SEC. 61. end insert   

end insert

begin insert Section 42238.7 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.7.  

The governing board of each school district, as a
condition of apportionment, shall report to the Superintendent of
Public Instruction, not later than May 1, 1998, and September 1,
1998, respectively, the portion of the attendance in the schools and
classes maintained by the district that was reported for each of the
1996-97 and 1997-98 school years pursuant to Section 41601 that
consisted of absences excused pursuant to subdivision (b) of
Section 46010 and to Section 46015, as those sections read on July
1, 1996.

end delete

begin insert

begin insert SEC. 62. end insert   

end insert

begin insert Section 42238.8 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.8.  

(a) Effective July 1, 1998, the Superintendent of
Public Instruction shall make a one-time adjustment to the revenue
limit per unit of average daily attendance of each school district.
This one-time adjustment shall apply for the 1998-99 fiscal year,
and for each fiscal year thereafter, but not for any year prior to
1998-99, and shall be accomplished by revision of the prior fiscal
year revenue limit per unit of average daily attendance, as follows:

(1) Determine a revised revenue limit per unit of average daily
attendance for the 1996-97 fiscal year as follows:

(A) For each school district that had its revenue limit funding
for the 1996-97 fiscal year calculated on the basis of its 1996-97
average daily attendance pursuant to paragraph (1) of subdivision
(a) of Section 42238.5, the revised revenue limit per unit of average
daily attendance shall equal the adjusted total base revenue limit
determined pursuant to paragraph (2) divided by the adjusted
average daily attendance determined pursuant to subparagraph (A)
of paragraph (3).

(B) For each school district that had its revenue limit funding
for the 1996-97 fiscal year calculated on the basis of its 1995-96
average daily attendance pursuant to paragraph (1) of subdivision
(a) of Section 42238.5, the revised revenue limit per unit of average
daily attendance shall equal the adjusted total base revenue limit
determined pursuant to paragraph (2) divided by the adjusted
average daily attendance determined pursuant to subparagraphs
(B), (C), and (D) of paragraph (3).

(2) Determine the amount of the 1996-97 total base revenue
limit funding received pursuant to Section 42238 for growth and
nongrowth average daily attendance, including, as nongrowth
average daily attendance, attendance in necessary small schools
in the year determined to be the greater pursuant to paragraph (1)
of subdivision (a) of Section 42238.5 for the 1996-97 fiscal year,
but excluding attendance in nonpublic, nonsectarian schools,
county office operated special education, and county community
school programs.

(3) (A) Reduce the average daily attendance figure used to
make the determination set forth in paragraph (2) by the amount
of average daily attendance included in that figure for excused
absences pursuant to subdivision (b) of Section 46010 as that
subdivision read on July 1, 1996.

(B) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance in
necessary small schools and attendance for excused absences
pursuant to subdivision (b) of Section 46010 as it read on July 1,
1996, but excluding attendance, including attendance for excused
absences, in nonpublic, nonsectarian schools, county-operated
special education programs, and county community schools.

(C) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance in
necessary small schools, but excluding attendance in nonpublic,
nonsectarian schools, county-operated special education programs,
and county community schools and for excused absences pursuant
to subdivision (b) of Section 46010 as it read on July 1, 1996.

(D) Calculate the adjusted revenue limit average daily attendance
by multiplying the average daily attendance figure used to make
the determination set forth in paragraph (2) by the quotient of the
amount determined pursuant to subparagraph (C) divided by the
amount determined pursuant to subparagraph (B).

(4) Recalculate the 1997-98 fiscal year revenue limit per unit
of average daily attendance to reflect the revision in the 1996-97
revenue limit per unit of average daily attendance determined
pursuant to paragraph (1).

(b) The calculations made pursuant to paragraphs (1) and (4)
of subdivision (a) shall not be used for apportionment purposes
for either of the fiscal years referred to in those paragraphs or for
adjustments for those years.

(c) If the governing board of any school district demonstrates
to the satisfaction of the Superintendent of Public Instruction that,
because of extraordinary circumstances beyond the control of the
school district, the amount of absences excused in one or more
district programs in fiscal year 1996-97 pursuant to subdivision
(b) of Section 46010 as it read on July 1, 1996, was significantly
lower than it would ordinarily have been in comparison to the
amount of actual attendance in fiscal year 1996-97, the
Superintendent of Public Instruction shall make a compensating
adjustment, consistent with the provisions of Section 2 of the
Education Code, in the calculation set forth in this section.

end delete

begin insert

begin insert SEC. 63. end insert   

end insert

begin insert Section 42238.9 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.9.  

The amount per unit of average daily attendance
subtracted pursuant to Section 56712 for revenue limits for pupils
in special classes and centers shall be the district’s total revenue
limit for the current fiscal year computed pursuant to Section
42238, including funds received pursuant to Article 4 (commencing
with Section 42280), but excluding the total amount of funds
received pursuant to Sections 46200 to 46206, inclusive, and
Section 45023.4, as that section read on July 1, 1986, divided by
the district’s current year average daily attendance pursuant to
Section 42238.5. The amount per unit of average daily attendance
that is excluded in this calculation for each school district shall be
increased for the 1998-99 fiscal year by the quotient for that district
of the amount determined pursuant to subparagraph (B) of
paragraph (3) of subdivision (a) of Section 42238.8 divided by the
amount determined pursuant to subparagraph (C) of paragraph (3)
of subdivision (a) of Section 42238.8.

end delete

begin insert

begin insert SEC. 64. end insert   

end insert

begin insert Section 42238.95 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.95.  

(a) The amount per unit of average daily attendance
for pupils in special classes and centers that shall be apportioned
to each county office of education shall be equal to the amount
determined for the district of residence pursuant to Section 42238.9,
increased by the quotient equal to the amount determined pursuant
to paragraph (1) divided by the amount determined pursuant to
paragraph (2). This subdivision only applies to average daily
attendance served by employees of the county office of education.

(1) Determine the second principal apportionment average daily
attendance for special education for the county office of education
for the 1996-97 fiscal year, including attendance for excused
absences, divided by the corresponding average daily attendance
excluding attendance for excused absences pursuant to subdivision
(b) of Section 46010 as it read on July 1, 1996, reported pursuant
to Section 41601 for the 1996-97 fiscal year.

(2) Determine the second principal apportionment average daily
attendance for the 1996-97 fiscal year, including attendance for
excused absences, for all of the school districts within the county,
excluding average daily attendance for county office special
education and county community school programs and nonpublic
nonsectarian schools, divided by the corresponding average daily
attendance, excluding attendance for excused absences determined
pursuant to subdivision (b) of Section 46010 as it read on July 1,
1996, and reported pursuant to Section 41601 for the 1996-97
fiscal year.

(b) A county office of education shall provide the data required
to perform the calculation specified in paragraph (1) of subdivision
(a) to the Superintendent of Public Instruction in order to be eligible
for the adjustment pursuant to subdivision (a).

end delete

begin insert

begin insert SEC. 65. end insert   

end insert

begin insert Section 42238.11 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.11.  

Notwithstanding any other provision of law, for the
1994-95 fiscal year the county superintendent of schools shall
reduce the total revenue limit for each school district in the
jurisdiction of the county superintendent of schools by the amount
of the decreased employer contributions to the Public Employees’
Retirement System resulting from the enactment of Chapter 330
of the Statutes of 1982, adjusted for any changes in those
contributions resulting from subsequent changes in employer
contribution rates, excluding rate changes due to the direct transfer
of the state-mandated portion of the employer contributions to the
Public Employees’ Retirement System, through the 1994-95 fiscal
year. The reduction shall be calculated for each school district as
follows:

(a) Determine the amount of employer contributions that would
have been made in the 1994-95 fiscal year if the applicable Public
Employees’ Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes
of 1982 were in effect during the 1994-95 fiscal year.

For purposes of this calculation, no school district shall have a
contribution rate higher than 13.020 percent.

(b) Subtract from the amount determined in subdivision (a) the
actual amount of employer contributions made to the Public
Employees’ Retirement System in the 1994-95 fiscal year.

(c) For the purposes of this section, employer contributions to
the Public Employees’ Retirement System for any of the following
positions shall be excluded from the calculation specified above:

(1) Positions or portions of positions supported by federal funds
that are subject to supplanting restrictions.

(2) Positions supported by funds received pursuant to Section
42243.6.

(3) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by any single
educational agency, from a non-General Fund revenue source
determined to be properly excludable from this section by the
Superintendent of Public Instruction with the approval of the
Director of Finance.

(d) For accounting purposes, the reduction made by this
provision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent of Public
Instruction.

(e) The amount of the reduction made by this section shall not
be adjusted by the deficit factor calculated pursuant to Section
42238.145.

It is the intent of the Legislature to make adjustments to school
district revenue limits for the 1994-95 fiscal year to reflect savings
that these districts will realize in the contributions to the Public
Employees’ Retirement System due to a reduced contribution rate
for the 1994-95 fiscal year.

end delete

begin insert

begin insert SEC. 66. end insert   

end insert

begin insert Section 42238.12 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.12.  

(a) For the 1995-96 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall adjust the
total revenue limit for each school district in the jurisdiction of the
county superintendent of schools by the amount of increased or
decreased employer contributions to the Public Employees’
Retirement System resulting from the enactment of Chapter 330
of the Statutes of 1982, adjusted for any changes in those
contributions resulting from subsequent changes in employer
contribution rates, excluding rate changes due to the direct transfer
of the state-mandated portion of the employer contributions to the
Public Employees’ Retirement System, through the current fiscal
year. The adjustment shall be calculated for each school district,
as follows:

(1) (A) Determine the amount of employer contributions that
would have been made in the current fiscal year if the applicable
Public Employees’ Retirement System employer contribution rate
in effect immediately before the enactment of Chapter 330 of the
Statutes of 1982 were in effect during the current fiscal year.

(B) For purposes of this calculation, no school district shall have
a contribution rate higher than 13.020 percent.

(2) Determine the actual amount of employer contributions
made to the Public Employees’ Retirement System in the current
fiscal year.

(3) If the amount determined in paragraph (1) for a school
district is greater than the amount determined in paragraph (2), the
total revenue limit computed for that school district shall be
decreased by the amount of the difference between those
paragraphs; or, if the amount determined in paragraph (1) for a
school district is less than the amount determined in paragraph (2),
the total revenue limit for that school district shall be increased by
the amount of the difference between those paragraphs.

(4) For the purpose of this section, employer contributions to
the Public Employees’ Retirement System for any of the following
positions shall be excluded from the calculation specified above:

(A) Positions or portions of positions supported by federal funds
that are subject to supplanting restrictions.

(B) Positions supported by funds received pursuant to Section
41540 that are established in order to satisfy court-ordered
desegregation requirements.

(C) Positions supported, to the extent of employers’
contributions not exceeding twenty-five thousand dollars ($25,000)
by any single educational agency, from a non-General Fund
revenue source determined to be properly excludable from this
section by the Superintendent with the approval of the Director of
Finance. Commencing in the 2002-03 fiscal year, only positions
supported from a non-General Fund revenue source determined
to be properly excludable as identified for a particular local
educational agency or pursuant to a blanket waiver by the
Superintendent and the Director of Finance, before the 2002-03
fiscal year, may be excluded pursuant to this paragraph.

(5) For accounting purposes, any reduction to school district
revenue limits made by this provision may be reflected as an
expenditure from appropriate sources of revenue as directed by
the Superintendent.

(6) The amount of the increase or decrease to the revenue limits
of school districts computed pursuant to paragraph (3) for the
1995-96 to 2002-03 fiscal years, inclusive, may not be adjusted
by the deficit factor applied to the revenue limit of each school
district pursuant to Section 42238.145.

(7) For the 2003-04 fiscal year and any fiscal year thereafter,
the revenue limit reduction specified in Section 42238.146 may
not be applied to the amount of the increase or decrease to the
revenue limits of school districts computed pursuant to paragraph
(3).

(b) The calculations set forth in paragraphs (1) to (3), inclusive,
of subdivision (a) exclude employer contributions for employees
of charter schools funded pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8.

(c) Funding appropriated through the Budget Act of 2001 or
legislation amending the Budget Act of 2001 for the purpose of
limiting the reductions to revenue limits calculated pursuant to
this section and to Section 2558 for the 2001-02 fiscal year shall
be allocated on a one-time basis in the following manner:

(1) Each school district and county office of education subject
to a reduced apportionment pursuant to this section or to Section
2558 shall receive a share of the amount described in paragraph
(3) that is proportionate to the reduction in their apportionment
pursuant to this section or to Section 2558 for the 2001-02 fiscal
year as compared to the statewide total reduction that would occur
absent this paragraph.

(2) For the 2001-02 fiscal year, instead of the alternative
calculation authorized by paragraph (1), San Francisco Unified
School District shall receive an amount equal to five dollars and
57 cents ($5.57) multiplied by its second principal apportionment
average daily attendance for the 2001-02 fiscal year.

(3) Notwithstanding any other law, total allocations pursuant
to this subdivision may not exceed thirty-five million dollars
($35,000,000).

(d) Thirty-five million dollars ($35,000,000) is hereby
appropriated from the General Fund for transfer to Section A of
the State School Fund for local assistance for the purpose of
limiting the reductions to revenue limits calculated pursuant to
this section and to Section 2558 for the 2003-04 fiscal year.
Funding from this appropriation shall be allocated in the following
manner:

(1) Each school district and county office of education subject
to a reduced apportionment pursuant to this section or to Section
2558 shall receive a share of the amount appropriated in this
subdivision that is proportionate to the reduction in their
apportionment pursuant to this section or to Section 2558 for the
2003-04 fiscal year as compared to the statewide total reduction
that would occur absent this paragraph.

(2) For the 2003-04 fiscal year, instead of the alternative
calculation authorized by paragraph (1), the San Francisco Unified
School District shall receive an amount equal to five dollars and
57 cents ($5.57) multiplied by its second principal apportionment
average daily attendance for the 2003-04 fiscal year.

(3) Notwithstanding any other law, total allocations pursuant
to this subdivision may not exceed thirty-five million dollars
($35,000,000) for the 2003-04 fiscal year.

(4) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by this section shall be deemed to be “General
Fund revenues appropriated for school districts,” as defined in
subdivision (c) of Section 41202, for the 2003-04 fiscal year and
included within the “total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B,” as defined in subdivision
(e) of Section 41202, for the 2003-04 fiscal year.

(e) For the 2004-05 fiscal year, and each fiscal year thereafter,
apportionment reductions pursuant to this section and to Section
2558 shall be limited as follows:

(1) Each school district and county office of education subject
to a reduced apportionment pursuant to this section or to Section
2558 shall receive a share of the amount described in paragraph
(3) that is proportionate to the reduction in their apportionment
pursuant to this section or to Section 2558 for the 2004-05 fiscal
year as compared to the statewide total reduction as would occur
absent this paragraph.

(2) Instead of the alternative calculation authorized by paragraph
(1), the San Francisco Unified School District shall receive funding
equal to the amount of funding per unit of average daily attendance
specified in paragraph (2) of subdivision (c) as increased annually
by cost-of-living adjustments specified in Section 42238.1,
multiplied by its second principal apportionment average daily
attendance for that fiscal year.

(3) Notwithstanding any other law, total limitations pursuant to
this subdivision may not annually exceed thirty-five million dollars
($35,000,000) as annually increased by the cost-of-living
adjustments specified in Section 42238.1, multiplied by the annual
statewide percentage growth in total average daily attendance,
measured at the second principal apportionment.

end delete

begin insert

begin insert SEC. 67. end insert   

end insert

begin insert Section 42238.13 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.13.  

(a) Notwithstanding any other provision of law, for
any elementary school district that meets all of the criteria specified
in subdivision (b), the base revenue limit for the 1988-89 fiscal
year and each subsequent fiscal year computed pursuant to Section
42238 shall be computed as though the 1987-88 base revenue limit
per unit of average daily attendance was two thousand nine hundred
sixty-five dollars ($2,965). The county superintendent shall
compute the revenue limit on that basis.

(b) The revenue limit computation described in subdivision (a)
shall apply to any elementary school district that meets all of the
following criteria:

(1) The minority enrollment in the district in the 1987-88 school
year was greater than 98 percent.

(2) The AFDC enrollment in the district in the 1987-88 school
year was greater than 32 percent.

(3) The district ranked in all of the following categories in the
1986-87 California Assessment Program as follows:

(A) Lowest 3 percent for third grade reading.

(B) Lowest 2 percent for sixth grade reading.

(C) Lowest 1 percent for eighth grade reading.

(D) Lowest 1 percent for sixth grade mathematics.

(E) Lowest 1 percent for eighth grade mathematics.

(F) Lowest 1 percent for history/social science.

(G) Lowest 1 percent for science.

(4) The district’s 1987-88 base revenue limit was 2 percent
below the statewide average for elementary districts and 7 percent
below the county average for elementary districts.

(5) The district is under a court order as of the effective date of
this act.

end delete

begin insert

begin insert SEC. 68. end insert   

end insert

begin insert Section 42238.14 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.14.  

For the purposes of this article, the revenue limit
for the 1993-94 fiscal year for each school district determined
pursuant to this article and adjusted pursuant to Section 42238.16
shall be reduced by a 8.14 percent deficit factor.

end delete

begin insert

begin insert SEC. 69. end insert   

end insert

begin insert Section 42238.145 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.145.  

For the purposes of this article, the revenue limit
for each school district shall be reduced by a deficit factor, as
follows:

(a) (1) For the 1994-95 fiscal year, the revenue limit for each
school district determined pursuant to this article shall be reduced
by an 11.01 percent deficit factor.

(2) For the 1995-96 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
10.12 percent deficit factor.

(3) For the 1996-97 and 1997-98 fiscal years, the revenue limit
for each school district determined pursuant to this article shall be
reduced by a 9.967 percent deficit factor, as adjusted pursuant to
Section 42238.42.

(4) For the 1999-2000 fiscal year, the revenue limit for each
school district determined pursuant to this article shall be reduced
by a 6.996 percent deficit factor.

(b) (1) The revenue limit for the 1994-95 fiscal year for each
school district shall be determined as if the revenue limit for each
school district had been determined for the 1993-94 fiscal year
without being reduced by the deficit factor required pursuant to
Section 42238.14.

(2) When computing the revenue limit for each school district
for the 1995-96 or any subsequent fiscal year pursuant to this
article, the revenue limit shall be determined as if the revenue limit
for that school district had been determined for the previous fiscal
year without being reduced by the deficit factor specified in this
section.

end delete

begin insert

begin insert SEC. 70. end insert   

end insert

begin insert Section 42238.146 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.146.  

(a) (1) For the 2003-04 fiscal year, the revenue
limit for each school district determined pursuant to this article
shall be reduced by a 1.198 percent deficit factor.

(2) For the 2004-05 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.323 percent deficit factor.

(3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each school district determined pursuant to this article shall be
further reduced by a 1.826 percent deficit factor.

(4) For the 2005-06 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.892 percent deficit factor.

(5) For the 2008-09 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
7.844 percent deficit factor.

(6) For the 2009-10 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
18.355 percent deficit factor.

(7) For the 2010-11 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
17.963 percent deficit factor.

(8) For the 2011-12 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
20.404 percent deficit factor.

(9) For the 2012-13 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
22.272 percent deficit factor.

(b) In computing the revenue limit for each school district for
the 2006-07 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2003-04, 2004-05, and 2005-06 fiscal
years without being reduced by the deficit factors specified in
subdivision (a).

(c) In computing the revenue limit for each school district for
the 2010-11 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2009-10 fiscal year without being
reduced by the deficit factors specified in subdivision (a).

(d) In computing the revenue limit for each school district for
the 2011-12 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2010-11 fiscal year without being
reduced by the deficit factors specified in subdivision (a).

(e) In computing the revenue limit for each school district for
the 2012-13 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2011-12 fiscal year without being
reduced by the deficit factors specified in subdivision (a).

(f) In computing the revenue limit for each school district for
the 2013-14 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2012-13 fiscal year without being
reduced by the deficit factors specified in subdivision (a).

end delete

begin insert

begin insert SEC. 71. end insert   

end insert

begin insert Section 42238.17 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.17.  

Notwithstanding any other provision of law, for any
school district that was reorganized effective July 1, 1992, as a
unified school district and that is congruent to a school district that
was reorganized as an elementary school district effective July 1,
1990, the Superintendent of Public Instruction shall compute
apportionments using the following data:

(a) For the purposes of paragraph (1) of subdivision (d) of
Section 42238 for the 1990-91 and 1991-92 fiscal years, the
superintendent shall use the actual number of units of average daily
attendance for the 1990-91 fiscal year second principal
apportionments.

(b) For the purposes of paragraph (1) of subdivision (d) of
Section 42238, for the 1992-93 fiscal year and each fiscal year
thereafter, the superintendent shall use the actual number of units
of average daily attendance for the 1992-93 fiscal year second
principal apportionment.

end delete

begin insert

begin insert SEC. 72. end insert   

end insert

begin insert Section 42238.23 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.23.  

Notwithstanding any other provision of law, persons
providing services to local education agencies through use of a
joint powers authority involving the local education agency who
would, in absence of the joint powers authority, otherwise be
considered school employees and subject to the Public Employees’
Retirement System rate reduction to revenue limits authorized in
Section 42238, shall not be excluded from the calculations of the
Public Employees’ Retirement System reduction authorized in that
section.

end delete

begin insert

begin insert SEC. 73. end insert   

end insert

begin insert Section 42239 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42239.  

(a) For each fiscal year the Superintendent of Public
Instruction shall compute funding for supplemental instruction for
each school district or charter school by multiplying the number
of pupil hours of supplemental instruction claimed pursuant to
Sections 37252 and 37252.2 by the pupil hour allowance specified
in subdivision (b) or by a pupil hour allowance specified in the
annual Budget Act in lieu of the amount computed in subdivision
(b).

(b) Hours of supplemental instruction shall be reimbursed at a
rate of three dollars and fifty-three cents ($3.53) per pupil hour,
adjusted in the 2005-06 fiscal year and subsequent fiscal years as
specified in this section, provided that a different reimbursement
rate may be specified for each fiscal year in the annual Budget Act
that appropriates funding for that fiscal year. This amount shall be
increased annually by the percentage increase pursuant to
subdivision (b) of Section 42238.1 granted to school districts or
charter schools for base revenue limit cost-of-living increases.

(c) (1) If appropriated funding is insufficient to pay all claims
made in any fiscal year pursuant to Sections 37252 and 37252.2,
the superintendent shall use any available funding appropriated
for the purposes of reimbursing school districts pursuant to Section
37252 or 37252.2.

(2) If appropriated funding is still insufficient to pay all claims
made in any fiscal year pursuant to Section 37252 or 37252.2, the
superintendent shall use any available funding appropriated for
the purposes of reimbursing school districts for supplemental
instruction in the prior fiscal year.

(3) If appropriated funding is still insufficient to pay all claims
made in any fiscal year pursuant to Section 37252 or 37252.2, the
superintendent shall use any available funding appropriated for
the purposes of reimbursing school districts for supplemental
instruction in the current fiscal year.

(4) The superintendent shall notify the Director of Finance that
there is an insufficiency of funding appropriated for the purposes
of Sections 37252 and 37252.2 only after the superintendent has
exhausted all available balances of appropriations made for the
current or prior fiscal years for the reimbursement of school
districts for supplemental instruction.

(d) Notwithstanding any other provision of law, neither the State
Board of Education nor the Superintendent of Public Instruction
may waive any provision of this section.

end delete

begin insert

begin insert SEC. 74. end insert   

end insert

begin insert Section 42240 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42240.  

For the 1988-89 fiscal year, the Superintendent of
Public Instruction shall do the following:

(a) Using the latest available data as of July 1, 1987, identify
each school district that meets all of the following criteria:

(1) Has a second principal apportionment average daily
attendance of fewer than 2,501 for the prior fiscal year.

(2) Has approved home-to-school transportation costs in excess
of 3 percent of its general fund total expense of education in the
prior fiscal year.

(b) For each school district identified pursuant to subdivision
(a), or that receives funding pursuant to Section 42240 or 42240.1
in the prior fiscal year, the superintendent shall make the following
calculations:

(1) Subtract from the approved home-to-school transportation
costs an amount equal to 3 percent of the general fund total expense
of education exclusive of lottery revenues.

(2) Compare the amount determined in paragraph (1) to the
amount the district received in the 1987-88 fiscal year pursuant
to Sections 42240 and 42240.1.

(c) If the comparison results in an amount less than the amount
received in the 1987-88 fiscal year, the superintendent shall use
that amount, but in no case shall the superintendent use an amount
less than 95 percent of the amount received in the 1987-88 fiscal
year.

(d) The superintendent shall calculate the net savings from the
comparison in subdivision (c).

(e) If the comparison results in an amount greater than the
amount received in the 1987-88 fiscal year, the superintendent
shall use the amount calculated as the sum of the following:

(1) The amount received in the 1987-88 fiscal year.

(2) The amount determined by allocating the net savings
calculated in subdivision (d) on a pro rata basis to each district in
proportion to the amount by which comparison results in an amount
greater than the amount received in the 1987-88 fiscal year.

(f) The superintendent shall divide the amount determined
pursuant to subdivision (c) or (e), whichever is appropriate, by the
1987-88 second principal apportionment average daily attendance.

(g) The amount determined by subdivision (f) may be added to
the amount determined pursuant to subdivision (b) of Section
42238.

(h) The amount determined pursuant to subdivision (c) or (e),
whichever is appropriate, may be added to the district’s
transportation allowance under Section 41850.

(i) Each school district eligible for funds may elect to have the
funds allocated pursuant to either subdivision (g) or (h).

(j) The amounts added to subdivision (b) of Section 42238
pursuant to subdivision (g) and the amount added to Section 41850
by subdivision (h) shall be considered to be permanent adjustments
to the base revenue limit or transportation allowance as appropriate.

end delete

begin insert

begin insert SEC. 75. end insert   

end insert

begin insert Section 42240.1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42240.1.  

Any elementary school district with less than 2,501
units of average daily attendance in grades kindergarten to 6,
inclusive, for the second principal apportionment in the 1978-79
fiscal year, whose 7th and 8th grade pupils were being educated
by a high school district pursuant to Article 5 (commencing with
Section 37060) of Chapter 1 of Part 22 during the 1978-79 fiscal
year, shall be entitled to the revenue limit adjustment computed
pursuant to Section 42240 beginning with the 1981-82 fiscal year.

This section shall become operative January 1, 1982.

end delete

begin insert

begin insert SEC. 76. end insert   

end insert

begin insert Section 42241.3 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42241.3.  

(a) This section applies only to the funding generated
by the average daily attendance of pupils attending a charter school
that has operated as a charter school since prior to July 1, 2005, if
a unified school district has been the sponsoring local educational
agency as defined in subdivision (i) of Section 47632, and if the
unified school district was governed by Section 47660 as that
section read on December 31, 2005.

(b) For the 2005-06 fiscal year only, the revenue limit funding
of a unified school district, other than a unified school district that
has converted all of its schools to charter status pursuant to Section
47606 and is operating them as charter schools, shall be increased
or decreased to reflect half of the difference between the funding
provided for the base revenue limit per unit of average daily
attendance of the unified school district as set forth in Section
42238 and the general-purpose entitlement per unit of average
daily attendance of the charter school as set forth in Section 47633.

end delete

begin insert

begin insert SEC. 77. end insert   

end insert

begin insert Section 42241.7 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42241.7.  

(a) For the 1978-79 fiscal year, and each fiscal year
thereafter, the revenue limit of any elementary, high, or unified
school district authorized pursuant to Sections 42237 and 42238
may be increased by an amount sufficient to provide additional
revenue equal to the expenditures estimated to be incurred by the
district in the budget year in complying with the following
provisions of the Unemployment Insurance Code: Sections 605
and 803, Article 6 (commencing with Section 821) of Chapter 3
of Part 1 of Division 1, or Article 3 (commencing with Section
976) of Chapter 4 of Part 1 of Division 1, less the actual
expenditures incurred by the district in the 1975-76 fiscal year in
complying with the following provisions of the Unemployment
Insurance Code: Section 605.2 and Article 6 (commencing with
Section 821) of Chapter 3 of Part 1 of Division 1.

(b) If, at the end of any fiscal year, the actual expenditures of
the district specified in subdivision (a) are less than the revenue
derived from the increase in revenue limit provided in subdivision
(a) for that fiscal year, the difference shall be used in the following
fiscal year exclusively for expenditures required pursuant to the
Unemployment Insurance Code provisions specified in subdivision
(a).

(c) If, at the end of any fiscal year, the actual expenditures of
the district specified in subdivision (a) exceed the revenue derived
from the increase in revenue limit provided in subdivision (a) for
that fiscal year, the difference may be added to the increase in
revenue limit, authorized pursuant to this section, in the following
fiscal year.

(d) (1) For the 1994-95 to 2002-03 fiscal years, inclusive, the
adjustment computed pursuant to this section shall not be adjusted
by the deficit factor applied to the revenue limit of each school
district pursuant to Section 42238.145.

(2) For the 2003-04 fiscal year and each fiscal year thereafter,
the revenue limit reduction specified in Section 42238.146 may
not be applied to the adjustment computed pursuant to this section.

(e) Expenditures for employees of charter schools funded
pursuant to Article 2 (commencing with Section 47633) of Chapter
6 of Part 26.8 are excluded from the calculations set forth in this
section.

end delete

begin insert

begin insert SEC. 78. end insert   

end insert

begin insert Section 42243.7 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42243.7.  

(a) For any school district that commenced operations
on or after June 30, 1978, or for any school district that receives
approval from the department for a new continuation education
high school for the 1979-80 fiscal year, or any fiscal year
thereafter, the Superintendent of Public Instruction shall compute
an adjustment to the district revenue limit pursuant to this section.

(b) Determine the amount of foundation program that the district
would have been entitled to pursuant to subdivision (a) of Section
41711, as that section read on July 1, 1977, if the district had
operated during the 1977-78 fiscal year, utilizing the number of
units of average daily attendance attending high school in the
district in the fiscal year for which the revenue limit is being
computed.

(c) Determine the amount of foundation program that the district
would have been entitled to pursuant to paragraph (1) of
subdivision (b) of Section 41711, as that section read on July 1,
1977, if the district had operated during the 1977-78 fiscal year,
utilizing the same number of units of average daily attendance
used in subdivision (b) of this section.

(d) Subtract the amount determined pursuant to subdivision (c)
from the amount computed pursuant to subdivision (b).

(e) The amount computed pursuant to subdivision (d), if greater
than zero, shall be added to the revenue limit computed pursuant
to subdivision (c) of Section 42237 or pursuant to Section 42238.
If the amount in subdivision (d) is less than zero there is no
adjustment.

(f) The Superintendent of Public Instruction shall reduce by the
amount computed pursuant to subdivision (e) the revenue limit
computed pursuant to Section 42238 of any district discontinuing
the operation of a continuation education school approved pursuant
to subdivision (a).

(g) (1) For the 1994-95 to 2002-03 fiscal years, inclusive, the
adjustment computed pursuant to this section may not be adjusted
by the deficit factor applied to the revenue limit of each school
district pursuant to Section 42238.145.

(2) For the 2003-04 fiscal year and each fiscal year thereafter,
the revenue limit reduction specified in Section 42238.146 may
not be applied to the adjustment computed pursuant to this section.

(h) The adjustment computed pursuant to this section for a new
continuation education high school may be applicable for any
unified school district that was not fully operational during the
first year of operation of the continuation education high school.
The number of units of average daily attendance to be used in
computing the adjustment shall be the number of units of average
daily attendance generated by the continuation education high
school in the district for the first year that the district is fully
operational in all grades.

(i) In the 1998-99 fiscal year and each fiscal year thereafter,
the ranges of average daily attendance resulting from the
calculation set forth in this section pursuant to Section 41711, as
that section read on July 1, 1977, shall be reduced by the statewide
average percentage that absences excused pursuant to subdivision
(b) of Section 46010, as that section read on July 1, 1996, were of
total second principal apportionment regular average daily
attendance for high schools in 1996-97, with the reduced ranges
then rounded to the nearest integer.

(j) Commencing with the 2005-06 fiscal year and
notwithstanding any provision of law, the amount of the adjustment
calculated pursuant to this section shall not be added to the revenue
limit of a school district, but shall be used in determining the
amount of the pupil retention block grant awarded a school district
pursuant to Article 1 (commencing with Section 41500) of Chapter
3.2.

end delete

begin insert

begin insert SEC. 79. end insert   

end insert

begin insert Section 42244 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42244.  

It is the intent of the Legislature that, in the event a
district increases its average daily attendance at a continuation
education school above the average daily attendance level approved
pursuant to subdivision (a) of Section 42243.7, the entire amount
of the revenues generated by the additional average daily
attendance shall be expended on the continuation education school
program.

end delete

begin insert

begin insert SEC. 80. end insert   

end insert

begin insert Section 42245 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42245.  

Whenever any computation required by this article
results, because of estimating or other errors, in a total revenue
limit in an amount more or less than actual data would have
produced, the revenue limit for the succeeding fiscal year shall be
reduced by an amount equal to the amount of the error if the total
produced was more, and may be increased by an amount up to the
amount of the error if the total produced was less.

end delete

begin insert

begin insert SEC. 81. end insert   

end insert

begin insert Section 42280 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42280.  

(a) For each school district that meets, in the current
or prior fiscal year, the conditions specified in Section begin delete 42281,
42282, end delete begin insert 42282 end insert or 42284 the Superintendent shall compute, for each
qualifying school in the school district, an amount pursuant to this
article.

begin insert

(b) The amount of funding for each qualified school district
shall equal the greater of either of the following:

end insert begin delete

(b) For each school district that is a countywide unified school
district that had fewer than 2,501 units of

end delete

begin insert (1) end insert begin insert   end insert begin insert The sum of necessary small elementary school allowances
determined pursuant to Section 42282 for the prior year end insert average
daily attendance begin delete in the 1990-91 fiscal year, the Superintendent
shall compute an amount pursuant to this article for those schools
that meet the conditions specified in Sections 42283 and 42285 in
the current or prior fiscal year. This subdivision is only applicable
to those schools funded pursuant to this article in the 1990-91 fiscal
year and, in subsequent years, if the school district has no more
than 3,000 units of average daily attendance. end delete begin insert and the number of
full-time teachers, and necessary small high school allowances
determined pursuant to Section 42284 for the prior year average
daily attendance and the number of certificated employees. end insert

begin insert

(2) The sum of necessary small elementary school allowances
determined pursuant to Section 42282 for the current year average
daily attendance and the number of full-time teachers, and
necessary small high school allowances determined pursuant to
Section 42284 for the current year average daily attendance and
the number of certificated employees.

end insert

begin insert

begin insert SEC. 82. end insert   

end insert

begin insert Section 42281 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42281.  

Except as specified in subdivision (d), for each
elementary school district that maintains only one school with a
second principal apportionment average daily attendance of less
than 97, the Superintendent shall make one of the following
computations, whichever provides the lesser amount:

(a) For each small school that has an average daily attendance
during the fiscal year of less than 25, exclusive of pupils attending
the 7th and 8th grades of a junior high school, and for which school
at least one teacher was hired full time, the Superintendent shall
compute for the school district fifty-two thousand nine hundred
twenty-five dollars ($52,925).

(b) For each small school that has an average daily attendance
during the fiscal year of 25 or more and less than 49, exclusive of
pupils attending the 7th and 8th grades of a junior high school,
and for which school at least two teachers were hired full time for
more than one-half of the days schools were maintained, the
Superintendent shall compute for the school district one hundred
five thousand eight hundred fifty dollars ($105,850).

(c) For each small school that has an average daily attendance
during the fiscal year of 49 or more but less than 73, exclusive of
pupils attending the 7th and 8th grades of a junior high school,
and for which school three teachers were hired full time for more
than one-half of the days schools were maintained, the
Superintendent shall compute for the school district one hundred
fifty-eight thousand seven hundred seventy-five dollars ($158,775).

(d) For each small school that has an average daily attendance
during the fiscal year of 73 or more and less than 97, exclusive of
pupils attending the 7th and 8th grades of a junior high school,
and for which school four teachers were hired full time for more
than one-half of the days schools were maintained, the
Superintendent shall compute for the school district two hundred
eleven thousand seven hundred dollars ($211,700). A school district
that qualifies under this subdivision may use this funding
calculation until the local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03,
per unit of average daily attendance multiplied by the average daily
attendance produces state aid equal to the small school funding
formula.

end delete

begin insert

begin insert SEC. 83. end insert   

end insert

begin insert Section 42282 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42282.  

For each district with fewer than 2,501 units of second
principal apportionment average daily attendance, on account of
each necessary small school, the Superintendent shall make the
following computations:

(a) For each necessary small school which has an average daily
attendance during the fiscal year of less than 25, exclusive of pupils
attending the 7th and 8th grades of a junior high school, and for
which school at least one teacher was hired full time, the
Superintendent shall compute for the school district fifty-two
thousand nine hundred twenty-five dollars ($52,925).

(b) For each necessary small school which has an average daily
attendance during the fiscal year of 25 or more and less than 49,
exclusive of pupils attending the 7th and 8th grades of a junior
high school, and for which school at least two teachers were hired
full time for more than one-half of the days schools were
maintained, the Superintendent shall compute for the school district
one hundred five thousand eight hundred fifty dollars ($105,850).

(c) For each necessary small school which has an average daily
attendance during the fiscal year of 49 or more, but less than 73,
exclusive of pupils attending the 7th and 8th grades of a junior
high school, and for which school three teachers were hired full
time for more than one-half of the days schools were maintained,
the Superintendent shall compute for the school district one
hundred fifty-eight thousand seven hundred seventy-five dollars
($158,775).

(d) For each necessary small school which has an average daily
attendance during the fiscal year of 73 or more and less than 97,
exclusive of pupils attending the 7th and 8th grades of a junior
high school, and for which school four teachers were hired full
time for more than one-half of the days schools were maintained,
the Superintendent shall compute for the school district two
hundred eleven thousand seven hundred dollars ($211,700).

(e) A school district that begin delete qualifies under this section end delete begin insert continues
to satisfy the criteria specified in Section 42283 end insert may use this
funding calculation until the local control funding formula
begin delete allocation end delete begin delete of average daily attendance multiplied by the average
daily attendance end delete begin insert grade span adjusted base grant calculated
pursuant to subdivision (d) of Section 42238.02 end insert produces state aid
equal to the small school funding formula.

begin insert

begin insert SEC. 84. end insert   

end insert

begin insert Section 42283 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42283.  

(a) For purposes of begin delete Sections 42281 and end delete begin insert Section end insert 42282,
a “necessary small school” is an elementary school with an average
daily attendance of less than begin delete 97, end delete begin insert 97 pupils, end insert excluding pupils
attending the seventh and eighth grades of a junior high school,
maintained by a school district to which any of the following
conditions apply:

(1) If as many as five pupils residing in the school district and
attending kindergarten and grades 1 to 8, inclusive, excluding
pupils attending the seventh and eighth grades of a junior high
school, in the elementary school with an average daily attendance
of less than 97 begin insert pupils end insert would be required to travel more than 10
miles one way from a point on a well-traveled road nearest their
home to the nearest other public elementary school.

(2) If as many as 15 pupils residing in the school district and
attending kindergarten and grades 1 to 8, inclusive, excluding
pupils attending the seventh and eighth grades of a junior high
school, in the elementary school with an average daily attendance
of less than 97 begin insert pupils end insert would be required to travel more than five
miles one way from a point on a well-traveled road nearest their
home to the nearest other public elementary school.

(3) If topographical or other conditions exist in a school district
begin delete which end delete begin insert that end insert would impose unusual hardships if the number of miles
specified in paragraph (1) or (2) were required to be traveled, or
if during the fiscal year the roads begin delete which end delete begin insert that end insert would be traveled
have been impassable for more than an average of two weeks per
year for the preceding five years, the governing board of the school
district may, on or before April 1, request the Superintendent, in
writing, for an exemption from these requirements or for a
reduction in the miles required. The request shall be accompanied
by a statement of the conditions upon which the request is based,
giving the information in a form required by the Superintendent.
The Superintendent shall cause an investigation to be made, and
shall either grant the request to the extent he or she deems
necessary, or deny the request.

(b) For purposes of this section, “other public elementary
school” is a public school, including a charter school, that serves
kindergarten or any of grades 1 to 8, inclusive, begin delete exclusive of end delete
begin insert excluding end insert grades 7 and 8 of a junior high school.

begin insert

begin insert SEC. 85. end insert   

end insert

begin insert Section 42284 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42284.  

(a) For each school district with fewer than 2,501 units
of average daily attendance, on account of each necessary small
high school, the Superintendent shall make one of the following
computations selected with regard only to the number of
certificated employees employed or average daily attendance,
whichever provides the lesser amount:

 

Average daily attendance	Minimum number of certificated employees	Amount to be computed
1-19	less than 3	$42,980
		per teacher
1-19	3	191,340
20-38	4	234,320
39-57	5	277,300
58-71	6	320,280
72-86	7	363,260
87-100	8	406,240
101-114	9	449,220
115-129	10	492,200
130-143	11	535,180
144-171	12	578,160
172-210	13	621,140
211-248	14	664,120
249-286	15	707,100

 

(b) For purposes of this section, a “certificated employee” means
an equivalent full-time position of an individual holding a
credential authorizing service and providing service in begin insert any of end insert
grades 9 to 12, inclusive, in any secondary school. Any fraction
of an equivalent full-time position remaining after all equivalent
full-time positions for certificated employees within the school
district have been calculated shall be deemed to be a full-time
position.

(c) A school district that begin delete qualifies under this section end delete begin insert continues
to satisfy the criteria specified in Section 42285 end insert may use the
funding calculation as provided in this section until the local control
funding formula begin delete allocation end delete begin insert grade span adjusted base grant
calculated end insert pursuant to begin delete Section 42238.02, as implemented by
Section 42238.03, per unit end delete begin delete of end delete begin delete average daily attendance multiplied
by the average daily attendance end delete begin insert subdivision (d) of Section 42238.02 end insert
produces state aid equal to the funding provided under this section.

begin insert

begin insert SEC. 86. end insert   

end insert

begin insert Section 42285 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42285.  

(a) For purposes of Section 42284, a necessary small
high school is a high school with an average daily attendance of
less than 287 pupils that comes within any of the following
conditions:

(1) The projection of its future enrollment on the basis of the
enrollment of the elementary schools in the school district shows
that within eight years the enrollment in high school in grades 9
to 12, inclusive, will exceed 286 pupils.

(2) Any one of the following combinations of distance and units
of average daily attendance applies:

(A) The high school had an average daily attendance of less
than 96 pupils in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 15 miles by well-traveled road from
the nearest other public high school and either 90 percent of the
pupils would be required to travel 20 miles or 25 percent of the
pupils would be required to travel 30 miles one way from a point
on a well-traveled road nearest their homes to the nearest other
public high school.

(B) The high school had an average daily attendance of 96 pupils
or more and less than 144 pupils in grades 9 to 12, inclusive, during
the preceding fiscal year and is more than 10 miles by well-traveled
road from the nearest other public high school and either 90 percent
of the pupils would be required to travel 18 miles or 25 percent of
the pupils would be required to travel 25 miles one way from a
point on a well-traveled road nearest their homes to the nearest
other public high school.

(C) The high school had an average daily attendance of 144
pupils or more and less than 192 pupils in grades 9 to 12, inclusive,
during the preceding fiscal year and is more than 71⁄2 miles by
well-traveled road from the nearest other public high school and
either 90 percent of the pupils would be required to travel 15 miles
or 25 percent of the pupils would be required to travel 20 miles
one way from a point on a well-traveled road nearest their homes
to the nearest other public high school.

(D) The high school had an average daily attendance of 192
pupils or more and less than 287 pupils in grades 9 to 12, inclusive,
during the preceding fiscal year and is more than 5 miles by
well-traveled road from the nearest other public high school and
either 90 percent of the pupils would be required to travel 10 miles
or 25 percent of the pupils would be required to travel 15 miles to
the nearest other public high school.

(3) Topographical or other conditions exist in the school district
which would impose unusual hardships on the pupils if the number
of miles specified in paragraph (2) were required to be traveled.
In these cases, the Superintendent may, when requested, and after
investigation, grant exceptions from the distance requirements.

(4) The Superintendent has approved the recommendation of a
county committee on school district organization designating one
of two or more schools as necessary isolated schools in a situation
where the schools are operated by two or more school districts and
the average daily attendance of each of the schools is less than 287
pupils in grades 9 to 12, inclusive.

(b) For purposes of Section 42284, a necessary small high school
also includes any of the following:

(1) A high school maintained by a school district for the
exclusive purpose of educating juvenile hall pupils or pupils with
exceptional needs.

(2) A high school maintained by a county office of education
for the exclusive purpose of educating foster youth if the high
school provided instruction in the 2012-13 fiscal year and the high
school is the only one maintained by the county office of education
that exclusively educates foster youth. Notwithstanding Section
42286, this paragraph shall become inoperative on July 1, 2017.

(3) A high school maintained by a unified school district as the
only comprehensive high school if the high school has an average
daily attendance of less than begin delete 286 end delete begin insert 287 end insert pupils and the school district
has 50 or fewer pupils per square mile of school district territory,
as measured by the number of pupils residing in the school district.
Notwithstanding Section 42286, this paragraph shall become
inoperative on July 1, 2017.

(c) For purposes of Section 42284, a necessary small high school
does not include a continuation school.

(d) For purposes of this section, “other public high school” is
a public school, including a charter school, that serves any of
grades 9 to 12, inclusive.

begin insert

begin insert SEC. 87. end insert   

end insert

begin insert Section 42286 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42286.  

(a)  begin delete Except as required under subdivision (b), if end delete begin insert If end insert a
high school is determined to be a necessary small high school
begin delete under end delete begin insert pursuant to end insert Section 42285, that status shall not be changed
except as a review of the determinative factors made every two
years following the date of the determination indicates that the
determination should be changed.

begin delete

(b) If a high school is determined to be a necessary small high
school under paragraph (3) of subdivision (b) of Section 42285,
that status shall not be changed except as a review of the
determinative factors made every two years following the date of
the determination indicates that the determination should be
changed.

end delete begin delete

(c)

end delete

begin insert (b) end insert  A high school that has not been determined to be a necessary
small high school under Section 42285, may be determined to be
a necessary small high school at the beginning of a fiscal year if
it meets the criteria specified in Section 42285.

begin insert

begin insert SEC. 88. end insert   

end insert

begin insert Section 42287 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42287.  

(a) For the 1984-85 fiscal year to the 2012-13 fiscal
year, inclusive, the Superintendent shall increase the funding
amounts specified in Sections begin delete 42281, 42282, end delete begin insert 42282 end insert and 42284 by
an amount proportionate to the increase applied to the statewide
average revenue limit for unified school districts for the then
current fiscal year.

(b) Commencing with the 2013-14 fiscal year, the
Superintendent shall increase the funding amounts specified in
Sections begin delete 42281, 42282, end delete begin insert 42282 end insert and 42284, as previously increased
pursuant to subdivision (a) and Sections 42289 to 42289.5,
inclusive, by the percentage calculated pursuant to paragraph (2)
of subdivision (d) of Section 42238.02, subject to the criteria
specified in paragraph (5) of subdivision (b) of Section 42238.03,
for the then current fiscal year.

begin insert

begin insert SEC. 89. end insert   

end insert

begin insert Article 4.5 (commencing with Section 42290) of
Chapter 7 of Part 24 of Division 3 of Title 2 of the end insert begin insert Education Code end insert
begin insert is repealed. end insert

begin insert

begin insert SEC. 90. end insert   

end insert

begin insert Section 42303 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42303.  

Notwithstanding the provisions of this article, Article
4.5 (commencing with Section 42290), Part 10.7 (commencing
with Section 17910), or any other law, a school district that receives
funding for the replacement of a schoolbus may sell that schoolbus
to another school district in this state if all of the following
conditions are satisfied:

(a) The purchasing school district is replacing a schoolbus that
is in service at the time of the sale and has not been designated a
temporary schoolbus pursuant to subdivision (a) of Section
42291.5.

(b) The schoolbus being replaced by the purchasing school
district is older than the schoolbus that is the subject of the sale.

(c) The schoolbus being replaced is not sold to another school
district.

(d) The purchasing school district by a resolution from its
governing board, holds the state and the selling school district
harmless for any liability that may result from the schoolbus that
is the subject of the sale.

(e) The proceeds from the sale of a schoolbus shall be used by
the selling district for home-to-school transportation purposes.

(f) After the districts agree to the sale, but prior to the sale being
finalized, the schoolbus being sold must be in compliance with all
relevant provisions of the Vehicle Code and Title 13 of the
California Code of Regulations.

end delete

begin insert

begin insert SEC. 91. end insert   

end insert

begin insert Section 42604 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42604.  

Notwithstanding any other provisions of law, the
computation of reimbursement for the costs of attendance specified
in contractual agreements through which educational services are
provided by other than the district or county in which a pupil
resides shall be based on the revenue per average daily attendance
received by the school district or county in which the pupil resides
rather than the computed revenue limit or foundation program per
average daily attendance of the district or county of residence.

end delete

begin insert

begin insert SEC. 92. end insert   

end insert

begin insert Section 45037 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

45037.  

(a) Except as provided in Section 45036, for the fiscal
year 2001-02 and for any fiscal year thereafter in which a person
renders service as a teacher in kindergarten or any of grades 1 to
12, inclusive, who does not have a valid certification document,
the school district or county office of education in which the person
is employed shall be assessed a penalty that shall be begin delete in lieu of any
loss of funding that would otherwise result under Chapter 6.10
(commencing with Section 52120) of Part 28. The penalty shall
be end delete calculated as provided in subdivision (b) and withheld from
state funding otherwise due to the district or county office of
education.

(1) Notwithstanding Section 46300, the attendance of the
noncertificated person’s pupils during the period of service shall
be included in the computation of average daily attendance.

(2) The noncertificated person’s period of service shall not be
excluded from the determination of eligibility for begin delete incentive funding
for a longer instructional day or year, or both, end delete begin insert instruction time end insert
pursuant to Article 8 (commencing with Section 46200) of Chapter
2 of Part 26.

(b) (1) For each person who rendered service in the employment
of the district or county office of education as a teacher in
kindergarten or any of grades 1 to 12, inclusive, during the fiscal
year, add the total number of schooldays on which the person
rendered any amount of the service.

(2) For each person who rendered service in the employment
of the district or county office of education as a teacher in
kindergarten or any of grades 1 to 12, inclusive, during the fiscal
year, for a period of service during which the person did not have
a valid certification document, add the number of schooldays on
which the person rendered any amount of the service without a
valid certification document.

(3) Divide the number determined in paragraph (2) by the
number determined in paragraph (1) and carry the result to four
decimal places.

(4) Multiply a school district’s begin delete revenue limit entitlement end delete begin insert local
control funding formula grant apportionment end insert for the fiscal year,
calculated pursuant to Section begin delete 42238, or it’s funding amount
calculated pursuant to Article 4 (commencing with end delete begin delete Section end delete begin delete 42280)
of Chapter 7 of Part 24, as applicable, or a county office of
education’s funding end delete begin insert 42238.02, as implemented by Section
42238.03, or a county office of education’s local control funding
formula alternative education grant computed pursuant to Section
2574, as apportioned pursuant to Section 2575, end insert for the fiscal year,
for the program in which the noncertificated person rendered
service by the number determined in paragraph (3).

(c) Beginning in begin delete 2002-03, end delete begin insert 2002-03, end insert if a county office of
education releases a warrant in favor of a person for whom a period
of school district service is included in the calculation set forth in
paragraph (2) of subdivision (b), and the warrant is either
compensation for employment as a teacher or for employment in
some other capacity if the county office of education has direct
knowledge or is in possession of information giving rise to a
reasonable inference that the person is rendering service as a
teacher, the county office shall be assessed a penalty. The penalty
assessed to a county office for any fiscal year in which one or more
district teachers did not have a valid certification document shall
be equal to the lesser of three amounts as follows:

(1) Fifty percent of all penalties assessed for that fiscal year to
all school districts in the county office’s jurisdiction pursuant to
subdivision (b).

(2) One-half percent of the total expenditures for that fiscal year
from unrestricted resources, as defined in the California School
Accounting Manual, in the county office’s county school service
fund, when two or fewer districts in the county office’s jurisdiction
are subject to penalties pursuant to subdivision (b).

(3) One percent of the total expenditures for that fiscal year
from unrestricted resources, as defined in the California School
Accounting Manual, in the county office’s county school service
fund, when three or more districts in the county office’s jurisdiction
are subject to penalties pursuant to subdivision (b).

(d) Except as provided in Section 41344.1, nothing in this
section may be waived in whole or in part.

begin insert

begin insert SEC. 93. end insert   

end insert

begin insert Section 46201.1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

46201.1.  

(a) Notwithstanding paragraph (4) of subdivision (b)
of Section 42238, for each school district that received an
apportionment pursuant to subdivision (a) of Section 46201 in the
1985-86 fiscal year, the county superintendent shall, for the
1986-87 fiscal year, add to the district’s base revenue limit per
unit of average daily attendance the amount received in the
1985-86 fiscal year, pursuant to subdivision (a) of Section 46201
divided by the sum of paragraphs (1) and (2).

(1) The district’s average daily attendance for the 1985-86 fiscal
year computed pursuant to Section 42238.5.

(2) The units of average daily attendance in the 1985-86 fiscal
year resulting from pupils attending schools funded pursuant to
Article 4 (commencing with Section 42280).

(b) Notwithstanding paragraph (4) of subdivision (b) of Section
42238, for each school district that received an apportionment
pursuant to subdivision (a) of Section 46201 in the 1984-85 fiscal
year, the county superintendent shall, for calculations or
recalculations of the district’s 1985-86 base revenue limit per unit
of average daily attendance, add to the district’s base revenue limit
per unit of average daily attendance the amount received in the
1984-85 fiscal year pursuant to subdivision (a) of Section 46201
divided by the sum of paragraphs (1) and (2).

(1) The district’s average daily attendance for the 1984-85 fiscal
year computed pursuant to Section 42238.5.

(2) The units of average daily attendance in the 1984-85 fiscal
year resulting from pupils attending schools funded pursuant to
Article 4 (commencing with Section 42280).

(c) Notwithstanding paragraph (3) of subdivision (b) of Section
42238, for each school district that received an apportionment
pursuant to subdivision (a) of Section 46200 in the 1984-85 fiscal
year, the county superintendent shall, for calculations or
recalculations of the district’s 1985-86 base revenue limit per unit
of average daily attendance, add to the district’s base revenue limit
per unit of average daily attendance the amount received in the
1984-85 fiscal year divided by the sum of paragraphs (1) and (2).

(1) The district’s average daily attendance for the 1984-85 fiscal
year computed pursuant to Section 42238.5.

(2) The units of average daily attendance for the 1984-85 fiscal
year resulting from pupils attending schools funded pursuant to
Article 4 (commencing with Section 42280).

(d) Notwithstanding subdivision (b) of Section 46200, for any
school district that received an apportionment pursuant to
subdivision (a) of Section 46200 that offers less than 180 days of
instruction in the 1986-87 fiscal year, the Superintendent of Public
Instruction shall reduce the base revenue limit per unit of average
daily attendance for the 1986-87 fiscal year by an amount
attributable to the increase received pursuant to subdivision (a) of
Section 46200, as adjusted.

end delete

begin insert

begin insert SEC. 94. end insert   

end insert

begin insert Section 46602 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

46602.  

begin insert (a) end insert begin insert   end insert If the county board of education determines that
the pupil should be permitted to attend in the begin insert school end insert district in
which he or she desires to attend, the pupil shall be admitted to
school in the begin insert school end insert district without delay and the attendance may
be counted by the begin insert school end insert district of attendance for begin delete revenue limit
and end delete state apportionment purposes.

begin delete

Written

end delete

begin insert (b) end insert begin insert   end insert begin insert Written end insert notice of the decision by the county board of
education shall be delivered to the pupil and the parent or guardian,
or person having custody of him or her, and to the governing boards
of the begin insert school end insert districts.

begin insert

begin insert SEC. 95. end insert   

end insert

begin insert Section 46603 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

46603.  

begin insert (a) end insert begin insert   end insert For a period not to exceed two school months, the
governing board of a school district may provisionally admit to
the schools of the begin insert school end insert district a pupil who resides in another
begin insert school end insert district, pending a decision of the two begin delete boards, end delete begin insert governing
boards of the school districts, end insert or by the county board of education
upon appeal, regarding the interdistrict attendance.

begin delete

Regardless

end delete

begin insert (b) end insert begin insert   end insert begin insert Regardless end insert of whether the decision on interdistrict attendance
is allowed, the provisional attendance may be counted by the begin insert school end insert
district of attendance for begin delete revenue limit and end delete state apportionment
purposes.

begin insert

begin insert SEC. 96. end insert   

end insert

begin insert Section 47630 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47630.  

begin delete (a) end delete begin delete   end delete It is the intent of the Legislature that each charter
school be provided with operational funding that is equal to the
total funding that would be available to a similar school district
serving a similar pupil population, except that a charter school
may not be funded as a necessary small school or a necessary small
high begin delete school, nor receive revenue limit funding that exceeds the
statewide average for a school district of a similar type. end delete begin insert school. end insert

begin delete

(b) The Legislature finds and declares that the funding method
established by this chapter provides for simple and, at the option
of the charter school, local or direct allocation of funds to charter
schools in a manner that is consistent with state and federal law.

end delete

begin insert

begin insert SEC. 97. end insert   

end insert

begin insert Section 47630.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

47630.5.  

(a) This chapter applies to the calculation of
operational funding for charter schools. Except as otherwise
provided in this chapter, this chapter shall apply to all charter
schools without regard to their sponsoring local education agency.

begin delete

(b) For the 1999-2000, 2000-01, and 2001-02 fiscal years in
the case of a charter school that was assigned a number by the
State Board of Education prior to June 1, 1999, the use of the
charter school funding method established by this chapter shall be
at the discretion of that charter school. A charter school that elects
to have its funding determined pursuant to the method established
by this chapter shall notify the State Department of Education by
June 1 prior to the affected fiscal year. An election to be funded
pursuant to the method established by this chapter is irrevocable.

end delete begin delete

(c)

end delete

begin insert (b) end insert  Additional legal or fiscal responsibilities on the part of a
county superintendent of schools are not imposed by this chapter,
except as specifically provided in this chapter.

begin insert

begin insert SEC. 98. end insert   

end insert

begin insert Section 47635 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47635.  

(a) A sponsoring local educational agency shall
annually transfer to each of its charter schools funding in lieu of
property taxes equal to the lesser of the following two amounts:

(1) The average amount of property taxes per unit of average
daily attendance, including average daily attendance attributable
to charter schools, received by the local educational agency,
multiplied by the charter school’s average daily attendance.

(2) The local control funding formula grant funding computed
pursuant to subdivision (d) of Section 42238.02, per unit of average
daily attendance, multiplied by the charter school’s average daily
attendance in each of the four corresponding grade level ranges:
kindergarten and grades 1, 2, and 3; grades 4, 5, and 6; grades 7
and 8; and grades 9 to 12, inclusive.

(3) Notwithstanding paragraph (2), until the Superintendent
determines that a charter school is funded pursuant to Section
42238.02 in the prior fiscal year, the Superintendent shall apportion
funding per unit of average daily attendance pursuant to this article.
The base grant for purposes of paragraph (2) shall be the begin insert lesser of
the amount calculated pursuant to paragraph (2) or the end insert sum of
the entitlements for the charter school in the specified fiscal year
as computed pursuant to paragraphs (1) to (4), inclusive, of
subdivision begin delete (a) of Section 42238.03 end delete begin insert (a), end insert and paragraph (3) of
subdivision begin delete (b) end delete begin insert (b), end insert of Section 42238.03, multiplied by the ratio
of local control funding formula base grant funding computed
pursuant to subdivision (d) of Section 42238.02 to the local control
funding formula amount for the fiscal year computed pursuant to
Section 42238.02.

(4) If the sum of the funding transferred pursuant to this
subdivision and the funding calculated pursuant to subdivision (e)
of Section 42238.03 exceeds the sum of the amounts calculated
pursuant to subdivisions (a) and (b) of Section 42238.03, the excess
funding shall be used to offset funding calculated pursuant to
subdivision (e) of Section 42238.03.

(b) The sponsoring local educational agency shall transfer
funding in lieu of property taxes to the charter school in monthly
installments, by no later than the 15th of each month.

(1) For the months of August to February, inclusive, a charter
school’s funding in lieu of property taxes shall be computed based
on the amount of property taxes received by the sponsoring local
educational agency during the preceding fiscal year, as reported
to the Superintendent for purposes of the second principal
apportionment. A sponsoring local educational agency shall transfer
to the charter school the charter school’s estimated annual
entitlement to funding in lieu of property taxes as follows:

(A) Six percent in August.

(B) Twelve percent in September.

(C) Eight percent each month in October, November, December,
January, and February.

(2) For the months of March to June, inclusive, a charter
school’s funding in lieu of property taxes shall be computed based
on the amount of property taxes estimated to be received by the
sponsoring local educational agency during the fiscal year, as
reported to the Superintendent for purposes of the first principal
apportionment. A sponsoring local educational agency shall transfer
to each of its charter schools an amount equal to one-sixth of the
difference between the school’s estimated annual entitlement to
funding in lieu of property taxes and the amounts provided pursuant
to paragraph (1). An additional one-sixth of this difference shall
be included in the amount transferred in the month of March.

(3) For the month of July, a charter school’s funding in lieu of
property taxes shall be computed based on the amount of property
taxes estimated to be received by the sponsoring local educational
agency during the prior fiscal year, as reported to the
Superintendent for purposes of the second principal apportionment.
A sponsoring local educational agency shall transfer to each of its
charter schools an amount equal to the remaining difference
between the school’s estimated annual entitlement to funding in
lieu of property taxes and the amounts provided pursuant to
paragraphs (1) and (2).

(4) Final adjustments to the amount of funding in lieu of
property taxes allocated to a charter school shall be made in
February, in conjunction with the final reconciliation of annual
apportionments to schools.

(5) Subdivision (a) and paragraphs (1) to (4), inclusive, do not
apply for pupils who reside in, and are otherwise eligible to attend
a school in, a basic aid school district, but who attend a charter
school in a nonbasic aid school district. With regard to these pupils,
the sponsoring basic aid school district shall transfer to the charter
school an amount of funds equivalent to the local control funding
formula grant pursuant to Section 42238.02, as implemented by
Section 42238.03, earned through average daily attendance by the
charter school for each pupil’s attendance, not to exceed the
average property tax share per unit of average daily attendance for
pupils residing and attending in the basic aid school district. The
transfer of funds shall be made in not fewer than two installments
at the request of the charter school, the first occurring not later
than February 1 and the second not later than June 1 of each school
year. Payments shall reflect the average daily attendance certified
for the time periods of the first and second principal
apportionments, respectively. The Superintendent may not
apportion any funds for the attendance of pupils described in this
subdivision unless the amount transferred by the basic aid begin insert school end insert
district is less than the local control funding formula grant pursuant
to Section 42238.02, as implemented by Section 42238.03, earned
by the charter school, in which event the Superintendent shall
apportion the difference to the charter school from state funds.

(c) Notwithstanding subdivisions (a) and (b), for a pupil
attending a county charter program school authorized pursuant to
Section 47605.6 for whom the county office of education is not
educationally responsible, the county charter program school may
seek in-lieu property tax reimbursement from the pupil’s school
district of residence in an amount agreed upon by the county charter
program school and the school district of residence.

begin insert

begin insert SEC. 99. end insert   

end insert

begin insert Section 47663 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47663.  

(a) (1) For a pupil of a charter school sponsored by a
basic aid school district who resides in, and is otherwise eligible
to attend, a school district other than a basic aid school district,
the Superintendent shall apportion to the sponsoring school district
an amount equal to 70 percent of the local control funding formula
base grant computed pursuant to subdivision (d) of Section
42238.02, per unit of average daily attendance that would have
been apportioned to the school district that the pupil resides in,
and would otherwise have been eligible to attend.

(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district the pupil resides in, and would
otherwise have been eligible to attend, is funded pursuant to
Section 42238.02 in the prior fiscal year, the Superintendent shall
apportion, for average daily attendance pursuant to this article, begin insert the
lesser of the amount calculated pursuant to paragraph (1) or end insert 70
percent of the sum of the entitlements for the school district that
the pupil resides in, and would otherwise have been eligible to
attend, for the specified fiscal year as computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision begin delete (a) of Section
42238.03 end delete begin insert (a), end insert and paragraph (3) of subdivision begin delete (b) end delete begin insert (b), end insert of Section
42238.03, divided by the average daily attendance for that fiscal
year and then multiplied by the ratio of local control funding
formula base grant funding computed pursuant to subdivision (d)
of Section 42238.02 to the local control funding formula amount
for the fiscal year computed pursuant to Section 42238.02.

(3) If the entitlements for the school district the pupil resides
in, and would otherwise have been eligible to attend, as computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (a), and
paragraph (3) of subdivision (b), of Section 42238.03, include
funding calculated pursuant to Article 4 (commencing with Section
42280) of Chapter 7 of Part 24 of Division 3 for a fiscal year,
paragraph (2) shall not apply and the apportionment of state funds
for the average daily attendance credited pursuant to this section
for that fiscal year shall be calculated pursuant to paragraph (1).

(b) A school district that loses basic aid status as a result of
transferring property taxes to a charter school or schools pursuant
to Section 47635 for pupils who reside in, and are otherwise
eligible to attend, a school district other than the school district
that sponsors the charter school, shall be eligible to receive a pro
rata share of funding provided by subdivision (a), with the proration
factor calculated as the ratio of the following:

(1) The amount of property taxes that the school district receives
in excess of its total base grant per unit of average daily attendance
calculated pursuant to Section 42238.02, as implemented by
Section 42238.03, before any transfers made pursuant to Section
47635, except for transfers in lieu of property taxes made for pupils
who reside in, and would otherwise be eligible to attend, a school
of the school district.

(2) The total amount in lieu of property taxes transferred
pursuant to Section 47635 to the charter school or schools that it
sponsors, except for transfers in lieu of property taxes made for
pupils who reside in, and would otherwise be eligible to attend, a
school of the school district.

(c) In no event shall the amount provided pursuant to this section
exceed the amount in lieu of property taxes transferred on behalf
of charter school pupils who do not reside in the school district,
less the proportionate amount of base grant state aid provided
pursuant to Section 42238.02, as implemented by Section 42238.03,
that is attributable to the charter school pupils who do not reside
in the school district.

(d) The Superintendent shall not apportion funds for the
attendance of a pupil in a charter school of a nonbasic aid school
district who resides in, and is otherwise eligible to attend school
in, a basic aid school district unless the pupil is subject to the
exceptions set forth in paragraph (5) of subdivision (b), and
subdivision (c), of Section 47635.

(e) For purposes of this section, “basic aid school district” means
a school district that does not receive from the state, for any fiscal
year in which the subdivision is applied, an apportionment of state
funds as described in subdivision (o) of Section 42238.02.

begin insert

begin insert SEC. 100. end insert   

end insert

begin insert Section 48310 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

48310.  

(a) The average daily attendance for pupils admitted
by a school district of choice pursuant to this article shall be
credited to that school district pursuant to Section 46607. The
attendance report for the school district of choice may include an
identification of the school district of residence.

(b) Notwithstanding any other law, state aid for categorical
education programs for pupils admitted under this article shall be
apportioned to the school district of choice.

(c) (1) For a school district of choice that is a basic aid school
district, the apportionment of state funds for average daily
attendance credited pursuant to this section shall be 70 percent of
the school district local control funding formula base grant
computed pursuant to subdivision (d) of Section 42238.02, as
implemented by Section 42238.03, that would have been
apportioned to the school district of residence.

(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district of residence is funded pursuant
to Section 42238.02 in the prior fiscal year, the Superintendent
shall apportion, for average daily attendance pursuant to this article,
begin insert the lesser of the amount calculated pursuant to paragraph (1) or end insert
70 percent of the sum of the entitlements for the school district of
residence for the specified fiscal year as computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision begin delete (a) of Section
42238.03 end delete begin insert (a), end insert and paragraph (3) of subdivision begin delete (b) end delete begin insert (b), end insert of Section
42238.03, divided by the average daily attendance pursuant to this
article for that fiscal year and then multiplied by the ratio of local
control funding formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for the fiscal year computed pursuant to Section
42238.02.

(3) If the entitlements for the school district of residence
computed pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a), and paragraph (3) of subdivision (b), of Section
42238.03, include funding calculated pursuant to Article 4
(commencing with Section 42280) of Chapter 7 of Part 24 of
Division 3 for a fiscal year, paragraph (2) shall not apply and the
apportionment of state funds for the average daily attendance
credited pursuant to this section for that fiscal year shall be
calculated pursuant to paragraph (1).

(4) For purposes of this subdivision, the term “basic aid school
district” means a school district that does not receive from the
state, for a fiscal year in which this subdivision is applied, an
apportionment of state funds as described in subdivision (o) of
Section 42238.02.

(d) The average daily attendance of pupils admitted by a school
district of choice pursuant to this article shall be credited to that
school district for purposes of any determination under Article 2
(commencing with Section 17010) of Chapter 12 of Part 10 of
Division 1 of Title 1 that uses an average daily attendance
calculation.

begin insert

begin insert SEC. 101. end insert   

end insert

begin insert Section 48359.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

48359.5.  

(a) For a school district of enrollment that is a basic
aid school district, the apportionment of state funds for average
daily attendance credited pursuant to this article shall be 70 percent
of the school district local control funding formula base grant that
would have been apportioned to the school district of residence
pursuant to subdivision (d) of Section 42238.02. Apportionment
of these funds shall begin in the second consecutive year of
enrollment, and continue annually until the pupil graduates from,
or is no longer enrolled in, the school district of enrollment.

(b) Notwithstanding subdivision (a), until the Superintendent
determines that the school district of residence is funded pursuant
to Section 42238.02 in the prior fiscal year, the Superintendent
shall apportion, for average daily attendance pursuant to this article,
begin insert the lesser of the amount calculated pursuant to subdivision (a) or end insert
70 percent of the sum of the entitlements for the school district of
residence for the specified fiscal year as computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision begin delete (a) of Section
42238.03 end delete begin insert (a), end insert and paragraph (3) of subdivision begin delete (b) end delete begin insert (b), end insert of Section
42238.03, divided by the average daily attendance pursuant to this
article for that fiscal year and then multiplied by the ratio of local
control funding formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for the fiscal year computed pursuant to Section
42238.02.

(c) If the entitlements for the school district of residence
computed pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a), and paragraph (3) of subdivision (b), of Section
42238.03, include funding calculated pursuant to Article 4
(commencing with Section 42280) of Chapter 7 of Part 24 of
Division 3 for a fiscal year, subdivision (b) shall not apply and the
apportionment of state funds for the average daily attendance
credited pursuant to this section for that fiscal year shall be
calculated pursuant to subdivision (a).

(d) For purposes of this section, “basic aid school district” means
a school district that does not receive an apportionment of state
funds as described in subdivision (o) of Section 42238.02 for a
fiscal year in which this section may apply.

begin insert

begin insert SEC. 102. end insert   

end insert

begin insert Section 52315 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52315.  

(a)  begin delete Any end delete begin insert A end insert visually impaired, orthopedically impaired,
or deaf person who is not enrolled in a regular high school or
community college program may attend a regional occupational
center or regional occupational program pursuant to the
requirements described in Section 52314.5. Additional special
instruction and support services shall be provided to these persons.

(b) If the Superintendent determines that there would be a
duplication of effort to these impaired persons if a regional
occupational center or regional occupational program provided
services to them, in that other programs exist that are available to
them, the Superintendent may disapprove of the curriculum to
provide programs to these impaired persons pursuant to Section
begin delete 52309 and of any state funding made available pursuant to Section
41897 for these purposes. end delete begin insert 52309. end insert

begin insert

begin insert SEC. 103. end insert   

end insert

begin insert Section 52319 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52319.  

begin insert (a) end insert begin insert   end insert Whenever the establishment and maintenance of
a regional occupational center by two or more school districts has
been undertaken pursuant to an agreement entered into in
accordance with the provisions of Article 1 (commencing with
Section 6500) of Chapter 5 of Division 7 of Title 1 of the
Government Code, and the terms of the agreement so authorize,
provision may be made for the issuance of bonds for construction
and other capital expenditure for the regional occupational center.
An election shall be called, held, and conducted in the manner
provided in Chapter 3 (commencing with Section 5300) of Part 4
of Division 1 of Title 1 on the question of the approval of the
issuance of such bonds. If, at the election, the requisite number of
voters cast their ballots in favor of the issuance of bonds, the bonds
shall be issued and sold in the manner provided by law for the
issuance and sale of bonds of a high school district. The issuance
and sale of such bonds shall be deemed to be an act of the
governing board of a high school district.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert total amount of bonds issued shall not exceed one-half
of 1 percent of the taxable property of the area served by the
regional occupational center as shown by the last equalized
assessment roll of the county or counties begin delete which end delete begin delete the center end delete begin delete serves,
and as modified pursuant to Section 41201. end delete begin insert that the center serves. end insert

begin delete

Bonds

end delete

begin insert (c) end insert begin insert   end insert begin insert Bonds end insert issued and sold pursuant to this section shall be retired
from proceeds of the tax under the provisions of Section 52317.

begin insert

begin insert SEC. 104. end insert   

end insert

begin insert Section 52324 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

52324.  

Units of average daily attendance in the regional
occupational centers or regional occupational programs of a county
for a fiscal year are the quotient arising from dividing the total
number of days of pupil’s attendance in the centers, or programs,
during the fiscal year by 175.

Attendance in regional occupational centers, or regional
occupational programs, operated under subdivision (a) of Section
52305 shall be considered pupil’s attendance under this section,
but attendance in regional occupational centers, or regional
occupational programs, under subdivision (b) of Section 52305
shall not be so considered.

As used in this section, “school district” includes each of those
districts which are cooperating in the maintenance of the center
or program, with the approval of the county superintendent of
schools, pursuant to Section 52301; and units of average daily
attendance of pupils residing in the school district shall be credited
to the school district.

end delete

begin insert

begin insert SEC. 105. end insert   

end insert

begin insert Section 52324.5 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

52324.5.  

For the purpose of crediting attendance for
apportionments from Section A of the State School Fund during
the fiscal year, any person who is concurrently enrolled in a
nonpublic high school and in a regional occupational center or
program operated under subdivision (a) of Section 52305 and
maintained by a district or districts shall be classified as a regular
student enrolled in a regular high school program, notwithstanding
Section 52610.

For the purposes of this section, a nonpublic high school is a
school which satisfies the requirements of Section 48222 if such
school is exempt from taxation under Section 214 of the Revenue
and Taxation Code, and if instruction in such school is given
through grade 12.

end delete

begin insert

begin insert SEC. 106. end insert   

end insert

begin insert Section 52327 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52327.  

begin insert (a) end insert begin insert   end insert The governing board of begin delete any end delete begin insert a school end insert district
maintaining a regional occupational center may establish a
bookstore on begin insert school end insert district property for the purpose of offering
for sale textbooks, workbooks, supplementary textbooks and
workbooks, school supplies, stationery supplies, confectionary
items, and related auxiliary school supplies and services.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert governing board begin insert of the school district end insert may establish a
bookstore fund into which the proceeds derived from the operation
of a regional occupational center bookstore may be transferred.
Moneys in a bookstore fund shall be deposited or invested in one
or more of the following ways:

begin delete

(a)

end delete

begin insert (1) end insert  Deposits in a bank or banks, or other institution, whose
accounts are federally insured.

begin delete

(b)

end delete

begin insert (2) end insert  Investment certificates or withdrawable shares in
state-chartered savings and loan associations and savings accounts
of federal savings and loan associations, provided the associations
are doing business in this state and have their accounts insured by
the Federal Savings and Loan Insurance Corporation.

begin delete

(c)

end delete

begin insert (3) end insert  Purchase of United States securities pursuant to subdivision
(a) of Section 16430 of the Government Code.

begin delete

The

end delete

begin insert (c) end insert begin insert   end insert begin insert The end insert governing board begin insert of the school district end insert shall designate
an employee or official of the begin insert school end insert district to act as trustee for
funds derived from the operation of a regional occupational center
bookstore and to receive those funds in accordance with procedures
established by the board.

begin delete

All

end delete

begin insert (d) end insert begin insert   end insert begin insert All end insert necessary expenses, including salaries, wages and costs
of capital improvements may be deducted from the revenue of a
regional occupational center bookstore. Net proceeds from the
operation of a regional occupational center bookstore shall be used
for the general benefit of the student body as determined by the
governing begin delete board. end delete begin insert board of the school district. end insert Income from a
regional occupational center bookstore shall not be included in the
begin delete district revenue limit. end delete begin insert school district funding allocation. end insert Funds
derived from the operation of a regional occupational center
bookstore shall be subject to audit pursuant to Section 41020.

begin insert

begin insert SEC. 107. end insert   

end insert

begin insert Section 52329 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52329.  

begin insert (a) end insert begin insert   end insert begin insert The end insert governing board of a school district located in
a county, or the county superintendent of schools maintaining a
regional occupational program in a county, any of the boundaries
of which are contiguous to the State of Arizona, may enter into an
agreement with a public or private educational agency located in
begin delete that state end delete begin insert the State of Arizona end insert to provide to begin delete students end delete begin insert pupils end insert living
in the begin insert school end insert district and enrolled in a regional occupational
program, career technical or technical training which, due to
geographical isolation, is not otherwise available to these begin delete students. end delete
begin insert pupils. end insert

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert program of training at the public or private educational
agency shall begin delete be approved by the Superintendent of Public
Instruction of California and shall end delete conform to the California State
Plan for Career Technical Education.

begin delete end delete begin delete

The attendance of pupils receiving career technical or technical
training at a public or private educational agency as authorized by
this section shall be included in the computation of average daily
attendance as prescribed by Sections 52324 and 52325, and shall
be credited to the county school service fund of the county of
residence. In no event, however, shall the county school service
fund be credited with more than one unit of average daily
attendance per calendar year on account of a pupil participating
in a program authorized by this section.

end delete begin delete end delete

begin insert

begin insert SEC. 108. end insert   

end insert

begin insert Section 52334 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52334.  

begin insert (a) end insert begin insert   end insert Indirect costs charged to regional occupational
centers and programs may not exceed begin delete that of end delete the school district or
county office of education, as appropriate, prior year indirect cost
rate as approved by the begin delete State Department of Education. end delete begin insert department. end insert

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert indirect costs charged by county offices of education
and school districts that provide regional occupational centers and
programs services on behalf of the county office of education or
joint powers authority, when added together, may not exceed the
indirect cost rate approved by the begin delete State Department of Education end delete
begin insert department end insert for the county office of education or the school district,
whichever is higher.

begin delete end delete begin delete

Revenue limit funds apportioned to a county office of education
or school district for regional occupational centers and programs
must be expended on programs and services offered by the regional
occupational centers and programs.

end delete begin delete end delete

begin insert

begin insert SEC. 109. end insert   

end insert

begin insert Section 52335 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52335.  

begin delete

Commencing with the 1988-89 fiscal year, funds for
regional occupational centers and programs shall be apportioned
in accordance with this article.

end delete

For purposes of this article, “ROC/P” means regional
occupational center or program.

begin insert

begin insert SEC. 110. end insert   

end insert

begin insert Section 52335.1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

52335.1.  

From funds appropriated in the annual Budget Act
for that purpose, the Superintendent of Public Instruction shall
apportion funds for ROC/Ps according to the following priorities:

(a) Apportionments for necessary small ROC/Ps pursuant to
Section 52324.6.

(b) Apportionments for ROC/P revenue limits pursuant to
Section 52335.2.

end delete

begin insert

begin insert SEC. 111. end insert   

end insert

begin insert Section 52335.12 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52335.12.  

(a) As a condition of receiving begin delete additional funding
based on average daily attendance, end delete begin insert state or federal funds, end insert the
regional occupational center or program shall report annually to
the department the academic and workforce preparation progress
of the secondary pupils enrolled in the center or program. Indicators
to measure that progress shall include, but are not limited to, the
begin delete Standardized Testing and Reporting (STAR) Program, end delete begin insert California
Assessment of Student Performance and Progress, established end insert
pursuant to Article 4 (commencing with Section 60640) of Chapter
5 of Part 33; the high school exit examination, pursuant to Chapter
9 (commencing with 60850) of Part 33; and other indicators of
academic and workforce preparation success, such as reduced
dropout rates, workforce preparation, increased matriculation into
postsecondary educational institutions, and other measures as
determined by the department.

(b) This section shall become effective only when the
longitudinal data on pupils enrolled in regional occupational centers
and programs can be disaggregated from the California longitudinal
pupil achievement data system begin delete (CALPADs) end delete database, established
pursuant to Chapter 10 (commencing with Section 60900) of Part
33.

begin delete end delete begin delete

(c) On or before October 1, 2007, the department shall submit
to the Department of Finance a detailed proposal for the
implementation of the outcome reports required in subdivision (a).
The proposal shall identify the specific data elements to be
collected and the costs associated with the data collection and
preparation of the report. The department shall consult with the
Department of Finance and the office of the Legislative Analyst
during the development of this proposal.

end delete begin delete end delete

begin insert

begin insert SEC. 112. end insert   

end insert

begin insert Section 52335.2 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

52335.2.  

The Superintendent of Public Instruction shall
calculate a revenue limit for each ROC/P in the following manner:

(a) Calculate a base revenue limit per unit of average attendance
for the current fiscal year as follows:

(1) Divide the revenue limit for the prior year computed pursuant
to this section by the annual units of average daily attendance
funded in the prior year pursuant to subdivisions (c) and (d).

(2) Increase the amount computed in paragraph (1) by the
percentage inflation adjustment specified in the Budget Act for
the current fiscal year multiplied by the statewide average ROC/P
revenue limit per unit of average daily attendance for the prior
fiscal year.

(b) Calculate a revenue limit per unit of average daily attendance
for program growth by increasing the revenue limit per unit of
average daily attendance for program growth computed pursuant
to this subdivision for the prior fiscal year by the percentage
inflation adjustment specified in the Budget Act for the current
fiscal year.

(c) Multiply the amount computed pursuant to subdivision (a)
by the lesser of the ROC/P’s annual units of average daily
attendance for the current fiscal year or the ROC/P’s annual units
of funded average daily attendance for the prior fiscal year.

(d) Subtract the ROC/P’s annual units of funded average daily
attendance for the prior fiscal year from the ROC/P’s annual units
of average daily attendance for the current fiscal year and multiply
the difference by the amount computed pursuant to subdivision
(b). If the product computed pursuant to this subdivision is
negative, it shall be deemed to be zero.

(e) Except as provided in Section 52335.3, the Superintendent
of Public Instruction shall apportion to the ROC/P the sum of the
amounts computed pursuant to subdivisions (c) and (d).

(f) The average daily attendance used for purposes of this section
shall not include the average daily attendance in schools receiving
funding pursuant to Section 52324.6.

(g) Any state funds made available as a result of local property
tax revenues deducted pursuant to Section 52335.3 shall be
allocated to each ROC/P in an equal amount per unit of funded
average daily attendance and shall not be included in the calculation
of the base revenue limit made pursuant to subdivision (a) for the
subsequent fiscal year.

(h) Before making the calculations described in subdivisions
(c) and (d) to determine the amount to be apportioned to each
ROC/P pursuant to subdivision (e) for the 1998-99 fiscal year,
average daily attendance for the 1997-98 fiscal year shall be
adjusted by a factor equal to the number one minus the quotient
of the number of units of that ROC/P’s 1996-97 average daily
attendance for absences excused pursuant to subdivision (b) of
Section 46010, as that subdivision read on July 1, 1996, divided
by that ROC/P’s total 1996-97 average daily attendance.

end delete

begin insert

begin insert SEC. 113. end insert   

end insert

begin insert Section 52335.3 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

52335.3.  

The Superintendent of Public Instruction shall deduct
from the amount computed pursuant to subdivision (e) of Section
52335.2 for each ROC/P operated by a county office of education
any local revenue that would otherwise be deemed restricted and
not available for expenditure in the current fiscal year pursuant to
subdivision (e) of Section 2558. Any local revenue so deducted
shall be used by the county office for support of the ROC/P.

end delete

begin insert

begin insert SEC. 114. end insert   

end insert

begin insert Section 52335.4 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

52335.4.  

The Superintendent of Public Instruction shall
determine each ROC/P’s share of funded growth average daily
attendance by computing the sum of subdivisions (a), (b), and (c):

(a) Subtract the ROC/P’s annual units of funded average daily
attendance for the prior year from the ROC/P’s annual units of
funded average daily attendance for the second prior year. If the
amount computed pursuant to this subdivision is negative, it shall
be deemed to be zero.

(b) Allocate 25 percent of the allowable growth average daily
attendance funded in the Budget Act to low participation ROC/P’s,
pursuant to criteria established by the Superintendent of Public
Instruction.

(c) (1) Subtract the statewide sum of the growth average daily
attendance computed pursuant to subdivisions (a) and (b) from the
allowable growth in average daily attendance funded in the Budget
Act. If the amount computed is negative, it shall be deemed to be
zero.

(2) (A) Calculate the ROC/P’s pro rata share of the funded
growth average daily attendance calculated pursuant to paragraph
(1), based on the prior year average daily attendance in grades 9
to 12, inclusive, for the school districts served by the ROC/P in
relation to the total statewide prior year average daily attendance
in grades 9 to 12, inclusive. For purposes of the calculation required
by this paragraph, the Superintendent of Public Instruction shall
use the average daily attendance reported for the second principal
apportionment of the prior year.

(B) In calculating the pro rata share of funded growth average
daily attendance, the Superintendent of Public Instruction shall
ensure that each ROC/P is provided at least 10 units of allowed
growth average daily attendance pursuant to subdivisions (b) and
(c).

(d) (1) It is the intent of the Legislature that each ROC/P use
its share of funded growth average daily attendance provided
pursuant to this section to serve pupils in grades 9 to 12, inclusive,
unless the governing board or governing boards of the school
district or districts overseeing the ROC/P determine that the needs
of pupils in grades 9 to 12, inclusive, have been met.

(2) It is the intent of the Legislature that, if a determination is
made pursuant to paragraph (1) that the needs of pupils in grades
9 to 12, inclusive, have been met, then the governing board or
governing boards of the school district or districts overseeing the
ROC/P may authorize the ROC/P to use its share of funded growth
average daily attendance provided pursuant to this section to serve
adults.

end delete

begin insert

begin insert SEC. 115. end insert   

end insert

begin insert Section 52335.5 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

52335.5.  

In the event that the funds appropriated for purposes
of this article are insufficient to fully fund the apportionments
herein authorized, the Superintendent of Public Instruction shall
reduce the amounts computed pursuant to Section 52335.2 for
each ROC/P based on equal amounts per unit of average daily
attendance, consistent with the following priorities:

(a) First priority shall be given to fully funding average daily
attendance that is less than or equal to the average daily attendance
funded in the prior fiscal year.

(b) Second priority shall be given to fully funding each ROC/P’s
share of funded growth average daily attendance determined
pursuant to Section 52335.4.

(c) Third priority shall be given to funding current year annual
average daily attendance that exceeds the sum of the average daily
attendance specified in subdivisions (a) and (b).

end delete

begin insert

begin insert SEC. 116. end insert   

end insert

begin insert Section 52335.6 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

52335.6.  

For purposes of allocating allowable growth average
daily attendance to low participation ROC/Ps, the Superintendent
of Public Instruction shall:

(a) Calculate for each ROC/P the prior year average daily
attendance in grades 9 to 12, inclusive, for the school districts
served by the ROC/P.

(b) Divide the funded average daily attendance of the ROC/P
for the prior year by the amount calculated in subdivision (a).

(c) Divide the statewide funded ROC/P average daily attendance
for the prior year by the prior year statewide average daily
attendance in grades 9 to 12, inclusive.

(d) For each ROC/P where the amount calculated in subdivision
(b) is less than the amount calculated in subdivision (c), calculate
the ROC/P’s pro rata share of allowable growth daily attendance
for low participation ROC/Ps, based on the average daily
attendance needed by the ROC/P to be at the percentage of
participation calculated in subdivision (c) in relation to the total
of average daily attendance needed by low participation ROC/Ps
for each ROC/P to be at the percentage of participation calculated
in subdivision (c).

end delete

begin insert

begin insert SEC. 117. end insert   

end insert

begin insert The heading of Article 7 (commencing with Section
60117) of Chapter 1 of Part 33 of Division 4 of Title 2 of the end insert begin insert Education Code end insert begin insert is amended to read: end insert

 

Article 7.  begin delete Pupil Textbook and end delete begin insert Public Hearings, end insert Instructional
Materials begin delete Incentive Program end delete

 

begin insert

begin insert SEC. 118. end insert   

end insert

begin insert Section 60117 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

60117.  

This article shall be known and may be cited as the
Pupil Textbook and Instructional Materials Incentive Program Act.

end delete

begin insert

begin insert SEC. 119. end insert   

end insert

begin insert Section 63001 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

63001.  

begin delete Each end delete begin insert A end insert school district that, in begin delete any end delete begin insert a end insert fiscal year, receives
begin delete any end delete begin insert an end insert apportionment for begin delete any end delete begin insert a end insert program specified in Section 63000
shall begin delete utilize end delete begin insert use end insert no less than 85 percent of that apportionment at
schoolsites for direct services to pupils. begin delete To the extent a school
district chooses to transfer, pursuant to Section 41500, up to 15
percent of School and Library Improvement Block Grant funds,
apportioned pursuant to Article 7 (commencing with Section
45170) of Chapter 3.2 of Part 24, a school district shall utilize no
less than 85 percent of the amount remaining after the transfer for
direct services to pupils. end delete

begin insert

begin insert SEC. 120. end insert   

end insert begin insert

(a) The sum of five billion nine hundred ninety-four
million four hundred seventeen thousand dollars ($5,994,417,000)
is hereby appropriated from the General Fund to the
Superintendent of Public Instruction and shall be allocated
pursuant to the calculation in subdivision (b) of Section 42238.03
of the Education Code.

end insert begin insert

(b) For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be
“General Fund revenues appropriated for school districts,” as
defined in subdivision (c) of Section 41202 of the Education Code,
for the 2015-16 fiscal year, and included within the “total
allocations to school districts and community college districts
from General Fund proceeds of taxes appropriated pursuant to
Article XIII B,” as defined in subdivision (e) of Section 41202 of
the Education Code, for the 2015-16 fiscal year.

end insert

begin insert

begin insert SEC. 121. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2015.

end delete