BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                         SB 78|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                 UNFINISHED BUSINESS


          Bill No:  SB 78
          Author:   Committee on Budget and Fiscal Review  
          Amended:  6/16/15  
          Vote:     21  

          SENATE FLOOR:  Not relevant

          ASSMBLY FLOOR:  Not available

           SUBJECT:   Education finance:  local control funding formula


          SOURCE:    Author


          DIGEST:  This bill repeals and revises numerous provisions of  
          the Education Code to conform to the adoption of the Local  
          Control Funding Formula (LCFF), and appropriates $5.994 billion  
          for the purpose of the LCFF.  

          Assembly Amendments delete the Senate version of the bill and  
          insert the current language.

          ANALYSIS:   

          Existing law:

          1)Establishes the LCFF, which replaced the prior revenue limit  
            and categorical funding structure for K-12 education finance.   
            The formula is comprised of a base grant (general purpose  
            funding), supplemental grants (funding for English learners,  
            low-income students, and students in foster care) and  
            concentration grants (additional funding for local educational  
            agencies with high numbers of English learners, low-income  
            students, and students in foster care).  








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          2)Establishes accountability requirements through the  
            development and adoption of Local Control and Accountability  
            Plans (LCAPs), which require the reporting of detailed student  
            achievement data and information related to the expenditure of  
            LCFF allocations.  Statute further requires the State Board of  
            Education to adopt a template for use by local educational  
            agencies in developing LCAPs.

          This bill:

          1)Repeals sections made obsolete by the LCFF, including:

             a)   Revenue limit deficit factor reductions.

             b)   Revenue limit equalization adjustments.

             c)   Revenue limit apportionment adjustments for attendance  
               reporting errors.

             d)   Inflation adjustments for county office of education  
               programs.

             e)   Computation of revenue limits for Regional Occupational  
               Centers and Programs (ROC/Ps).

             f)   Revenue limit to Public Employees' Retirement System  
               adjustments to reflect decreased employer contributions.

             g)   Adjustments to county office of education revenue limits  
               per unit of average daily attendance.

             h)   Revenue limit adjustments for small elementary school  
               districts.

             i)   Computation for concurrent enrollment in nonpublic high  
               schools and ROC/Ps.

             j)   Criteria for computation of base revenue limits for  
               specified elementary school districts.

             aa)         Adjustments for 1993-94 and 1995-96 fiscal year  








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               revenue limits.

             bb)         Equalization adjustments for certain fiscal years  
               between 1995-96 and 2011-12.

          2)Repeals sections relating to programs which have been rolled  
            into the LCFF, including:

             a)   Juvenile court schools operated by county  
               superintendents of schools.

             b)   Small community school categorical funding.

             c)   Pregnant minors programs operated by county  
               superintendents.

             d)   Instructional materials incentive program.

             e)   Allocations of funds for county office of education site  
               visits. 

          3)Adjusts timelines to better conform with the process of  
            developing LCAPs and local educational agency budgets,  
            including:

             a)   Adoption, public review, and approval by the  
               Superintendent of Public Instruction of the annual budget.

             b)   Budget review committee review of proposed budget.

             c)   Response to disapproval of budget by the review  
               committee.

          4)Repeals sections that applied only to past fiscal years,  
            including:

             a)   Duties of the Superintendent of Public Instruction for  
               the 1988-89 fiscal year.

             b)   Employer retirement contributions for the 1994-95 fiscal  
               year.









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             c)   Portion of attendance consisting of excused absences for  
               the 1996-97 and 1997-98 fiscal years.

          5)Makes technical changes such as updating article titles,  
            removing references to repealed sections, and aligning  
            references to the LCFF, including:

             a)   Removing references to repealed instructional materials  
               program.

             b)   Removing references to repealed school library program.

          6)Appropriates $5.994 billion for the purpose of the LCFF.

          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified6/19/15)


          None received


          OPPOSITION:   (Verified6/19/15)


          None received
           


          Prepared by: Elisa Wynne / B. & F.R. / (916) 651-4103
          6/19/15 9:16:56


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