BILL ANALYSIS Ó
SB 148
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Date of Hearing: July 15, 2015
ASSEMBLY COMMITTEE ON EDUCATION
Patrick O'Donnell, Chair
SB
148 (McGuire) - As Amended June 2, 2015
[Note: This analysis is on the bill as proposed to be amended.]
SENATE VOTE: Not relevant
SUBJECT: Career technical education: Career and Job Skills
Education Act.
SUMMARY: Updates statutory provisions governing school district
reorganization to reflect the change from revenue limit funding
to the local control funding formula (LCFF). Specifically, this
bill:
1)Defines "affected district" to mean a district that has been,
or is proposed to be, affected by an action to reorganize.
2)Defines "original district" to mean a district as it existed
prior to an action to reorganize.
3)Defines "former district" to mean a district that has been
wholly included in another district or has had all of its
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territory made part of two or more other districts through any
action to reorganize.
4)Defines "new district" to mean a district that is formed from
all or portions of one or more other districts by an action to
reorganize.
5)Defines "acquiring district" to mean a district that has all
or portions of one or more other districts transferred into,
or lapsed into, its boundaries.
6)Defines "divided district" to mean a district that has had a
portion of its territory become part of a new district or
transferred into one or more other districts by an action to
reorganize.
7)Defines the "reorganized portion of a divided district" to
mean the portion of the divided district's territory that
becomes part of a new district or is transferred into one or
more other districts.
8)Defines the "remaining portion of a divided district" to mean
the portion of the divided district's territory that does not
become part of a new district or that is not transferred into
one or more other districts.
9)Defines "reorganized district" to mean a district that is a
"new district," an "acquiring district," or a "divided
district."
10)Defines "component district" to mean an elementary school
district which is included within a high school district or an
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elementary school district excluded from an action to unify a
high school district but which continues to feed into the high
schools of the new unified school district.
11)Replaces references to "base revenue limit" with references
to "local control funding formula (LCFF) entitlement."
12)Repeals procedures for the computation of adjustments for
employee salaries and benefits for a newly reorganized
district based on revenue limit differences between the former
districts.
13)Specifies procedures for making the following calculations
for reorganized districts:
a) The LCFF entitlement;
b) The percentage of unduplicated pupils;
c) Categorical program funding;
d) Economic recovery target;
e) Transition funding (from revenue limits to the LCFF),
including the calculation of revenue limit funding rates
used to determine base funding during transition;
f) Calculation of the prior year funding gap; and
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g) Calculation of the necessary small school add-on;
EXISTING LAW: Establishes provisions for determing the funding
for reorganized districts based on revenue limits and
categorical program funding.
FISCAL EFFECT: Unknown
COMMENTS: School district reorganization is the process of
forming one or more districts from one or more existing
districts. It can take many forms. For example, two or more
districts can combine to form a single district, a single
district can annex a portion of a neighboring district (in which
case the neighboring district also loses territory), or a single
district is broken into two or more smaller districts. In each
case, the amount of funding that the reorganized districts are
entitled to must be computed by taking into account existing
funding formulas and the historical funding levels of the former
districts.
Historically, this involved adjusting revenue limit and
categorical program funding. However, the revenue limit
financing system was replaced by the LCFF in 2013-14. In the
adoption of LCFF, an attempt was made to provide a methodology
to blend LCFF funding for newly organized school districts.
Unfortunately, those provisions do not address all of the
specific categories of LCFF funding and how they should be
calculated for each affected school district. Therefore, the
current LCFF statutes relating to district reorganization are
not necessarily revenue neutral for either the school districts
or the state.
This bill establishes how specific LCFF funding components will
be calculated for various types of district reorganizations.
According to the California Department of Education (CDE), the
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calculations will be revenue neutral to the state and equitable
for all affected school districts.
Specifically, this bill establishes how specific LCFF funding
components will be calculated for several types of district
reorganizations, as follows:
1. Provides definitions for the districts affected by the
reorganization, including but not limited to:
a) a new district (i.e. a new district that is formed
from all or portions of one or more other districts),
b) an acquiring district (i.e. an existing district
that acquires territory from one or more districts),
c) the reorganized portion of a divided district (i.e.
the portion of an existing district that moves into a new
or acquiring district),
d) the remaining portion of a divided district (i.e. an
existing district that loses part of its territory to a
new or acquiring district)
1. Specifies how funding will be calculated (e.g. summed,
divided, etc.), based on the type of affected district (see
number 1 above), for the following LCFF funding components
during LCFF transition, including but not limited to:
a) Treatment of categorical funding subsumed into LCFF
b) Calculation of necessary small school add-on amount
c) Allowance for Minimum state aid
d) Calculation of revenue limit rates used to determine
base funding during LCFF transition
e) Percentage of unduplicated pupils for LCFF funding
f) Calculation of prior year cumulative gap funding
g) Calculation of economic recovery target funding
1. Makes other technical or conforming changes to comport
with the LCFF model
According to the CDE, about a dozen districts are currently in
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the process of reorganization.
Definition of terms
Unduplicated pupil are pupils who are either low income, an
English learner, or in foster care. For purposes of the LCFF, a
pupil who falls into more than category is counted only once
(i.e., is "unduplicated").
The economic recovery target ensures that, upon full funding of
the LCFF targets, all districts will have at least the same
purchasing power as they had in 2007-08.
The funding gap is the difference between the LCFF funding
target (i.e., the level of funding at full funding) for each
district and the actual amount of LCFF funding it receives,
based on the Budget Act.
REGISTERED SUPPORT / OPPOSITION:
Support
None received on this version
Opposition
None received on this version
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Analysis Prepared by:Rick Pratt / ED. / (916)
319-2087