BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      SB 78


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          (Without Reference to File)





          SENATE THIRD READING


          SB  
          78 (Committee on Budget and Fiscal Review)


          As Amended  June 16, 2015


          Majority vote. Budget Bill Appropriation Takes Effect  
          Immediately 


          SENATE VOTE:  Vote not relevant


          SUMMARY:  Appropriates $5.9 billion for the purpose of the Local  
          Control Funding Formula (LCFF), and repeals and revises numerous  
          provisions of the Education Code to conform to the adoption of  
          the LCFF.  Specifically, this bill:


          1)Appropriates $5,994,417,000 for the purpose of the LCFF.

          2)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;








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             d)   Computation of revenue limits for Regional Occupational  
               Centers and Programs (ROC/P);

             e)   Revenue limit PERS adjustments to reflect decreased  
               employer contributions;

             f)   Adjustments to county office of education revenue limits  
               per unit of average daily attendance; 

             g)   Revenue limit adjustments for small elementary school  
               districts;

             h)   Criteria for computation of base revenue limits  for  
               specified elementary school districts;

             i)   Adjustments for 1993-94 and 1995-96 fiscal year revenue  
               limits;

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

          1)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. 

          1)Adjusts timelines to better conform with the process of  








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            developing Local Control and Accountability Plans (LCAPs) and  
            local educational agency budgets, including:

             a)   Adoption, public review, and approval by the  
               superintendent of the annual budget;

             b)   Budget review committee review of proposed budget;

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

          1)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;

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

          1)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.

          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  








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            concentration grants (additional funding for local educational  
            agencies with high numbers of English learners, low income  
            students, and students in foster care).  

          2)Establishes accountability requirements through the  
            development and adoption of 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.



          Analysis Prepared by:                                             
          Nicole Vazquez / BUDGET / (916) 319-2099  FN: 0000968