BILL ANALYSIS Ó
SB 148
Page 1
Date of Hearing: August 26, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 148
(McGuire) - As Amended August 17, 2015
-----------------------------------------------------------------
|Policy |Education |Vote:|7 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill updates statutory provisions and financial
calculations relative to school district reorganization to
reflect the state funding transition from revenue limit funding
to the local control funding formula (LCFF). Specifically, this
SB 148
Page 2
bill:
1)Provides definitions for the districts affected by a
reorganization.
2)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.
3)Specifies procedures for making the following calculations for
reorganized districts: The LCFF entitlement; The percentage of
unduplicated pupils; Categorical program funding; Economic
recovery target; Transition funding (from revenue limits to
the LCFF), including the calculation of revenue limit funding
rates used to determine base funding during transition;
Calculation of the prior year funding gap; and Calculation of
the necessary small school add-on.
FISCAL EFFECT:
The California Department of Education indicates no additional
administrative costs as a result of this bill. School district
reorganization is a voluntary activity; therefore, any costs
associated with this bill would not constitute a state mandate.
The impact to individual school districts is unknown. The
intent of this bill is to ensure funding for reorganizing school
districts is calculated in a manner that is revenue neutral to
the state and equitable to all affected school districts.
COMMENTS:
Purpose. School district reorganization is the process of
forming one or more districts from one or more existing
SB 148
Page 3
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, 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. According to the CDE, about a
dozen districts are currently in the process of reorganization.
The Local Control Funding Formula adopted in 2013 replaced the
former school finance system under revenue limits. The statutes
associated with the former revenue limit funding system were
voluminous and complex, in part because revenue limits were used
for a variety of ancillary purposes, not just for funding (e.g.
class size penalties).
The current LCFF statutes relating to district reorganization
are not revenue neutral for some school districts or the state.
This bill specifies how LCFF funding components will be
calculated for various types of district reorganizations in a
manner that is revenue neutral to the state and is equitable for
all affected school districts.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081
SB 148
Page 4