BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 497              
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          |Author:    |Vidak                                                |
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          |Version:   |April 8, 2015                               Hearing  |
          |           |Date:     April 15, 2015                             |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Lenin Del Castillo                                   |
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          Subject:  Pupil transportation:  data

            SUMMARY
          
          This bill would require the California Department of Education  
          (CDE) to collect and post online pupil transportation data.

            BACKGROUND
          
          Current law authorizes school districts and county offices of  
          education to provide transportation services to regular  
          education students attending their schools at the discretion of  
          their governing board.  Additionally, current law requires  
          school districts to provide transportation services for special  
          education students whose individualized education programs  
          require such services.  
          (Education Code § 39800 and § 41850 et. seq.)  

          Federal law requires local educational agencies to transport the  
          following three groups of students:  students with disabilities;  
          students attending federally sanctioned schools; and homeless  
          students.  

          In 2013, the Local Control Funding Formula (LCFF) was enacted,  
          which replaced almost all sources of state funding, including  
          revenue limits and most of the categorical programs.  The LCFF  
          establishes a per-pupil funding target that is adjusted for  
          differences in grade level, but otherwise is uniform across the  
          state.  The LCFF also provides supplemental funding for  
          districts that serve students who are low-income, English  







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          language learners, or foster youth.  However, one categorical  
          program not rolled into the LCFF was the Home-to-School  
          Transportation (HTST) program. This program retained its  
          separate funding stream; such that any district that received  
          HTST funding in 2012-13 continues to receive that same amount of  
          funding in addition to its LCFF allocation each year.  However,  
          the HTST, unlike in prior years, would not be eligible for  
          future cost-of-living adjustments (COLAs).  Further, state law  
          continues to require that districts spend HTST funding on pupil  
          transportation. 

            ANALYSIS
          
          This bill:

          1.   Requires the California Department of Education (CDE),  
               commencing with data for the 2014-15 fiscal year and  
               annually thereafter, to request pupil transportation data  
               from each school district, charter school, county office of  
               education, joint powers authority, and regional  
               occupational center or program that provides pupil  
               transportation.  

          2.   Specifies that the provision of the transportation data to  
               the California Department of Education (CDE) is voluntary  
               on the part of these entities.

          3.   Requires the data to include, but is not limited to, totals  
               from each entity for all of the following:

               A.        Revenue received for transportation purposes.

               B.        Number of buses.

               C.        Ridership of all pupils.

               D.        Ridership of pupils with an individualized  
               education program (IEP).

               E.        Ridership of pupils who are eligible for free or  
               reduced-price meals.

               F.        Number of miles driven.









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               G.        Approved costs.

               H.        Cost per mile.

               I.        Cost per pupil.

          4.   Requires the CDE to annually post the data collected on its  
               website along with the statewide average cost per mile and  
               the statewide average cost per pupil.

          5.   Requires that the data posted on the website shall be  
               separated between home-to-school transportation and special  
               education transportation, as specified.

          STAFF COMMENTS
          
          1.   Need for the bill.  According to the author's office,  
               school transportation data has been collected since the  
               start of the Home-to-School Transportation (HTST) program  
               when it reimbursed local educational agencies (LEAs) at 100  
               percent of their costs.  The data was used by the state as  
               maintenance of effort to follow up on the school  
               transportation reimbursement.  In 1982-83, reimbursement  
               for the HTST program was frozen and reduced by 20 percent.   
               The state continued to use the data to adjust the  
               maintenance of effort appropriations and reduce  
               reimbursements if districts spent less money on  
               transportation.  The data was last collected in 2012-13 and  
               is no longer collected due to the HTST program allocation  
               being rolled in the Local Control Funding Formula (LCFF) as  
               an add-on to the base grant of LEAs.  The author's office  
               indicates that agencies, including the CDE and the Fiscal  
               Crisis and Management Assistance Team (FCMAT), and LEAs  
               need this data for administrative purposes, including the  
               ability to compare their efficiency levels with other LEAs.

          2.   2014 Budget Act.  The 2014 Budget Act provides  
               approximately $496 million in Proposition 98 General Fund  
               for the Home-to-School Transportation (HTST) program, which  
               includes both allocations for home-to-school transportation  
               and allocations for some pupils with disabilities,  
               specifically "severely disabled and orthopedically  
               impaired" pupils.  









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          3.   Legislative Analyst Office Report (LAO).  In 2013, the LAO  
               was requested to consider new approaches that could address  
               historical inequities and include incentives for efficient  
               and effective pupil transportation services.  The report  
               was issued February 2014 and included a description and  
               assessment of three options:  (1) funding pupil  
               transportation services within the new Local Control  
               Funding Formula (LCFF); (2) creating a new, targeted  
               program to help districts facing extraordinarily high  
               transportation costs; and (3) creating a broad-based  
               program whereby the state pays a share of each district's  
               transportation costs.  

               To assist the Legislature's deliberations, the LAO  
               identified three options for funding pupil transportation  
               moving forward.  The options primarily differ in the degree  
               to which they account for transportation costs separately  
               from the other costs districts face.  These three options  
               are to (1) fund transportation costs within the LCFF; (2)  
               fund only extraordinary transportation costs; or (3) fund a  
               share of all transportation costs.  Although the basic  
               approach for each option differs, all contain some key  
               advantages.  Most notably, all three options provide a  
               means to phase out the use of allocations linked to  
               historical factors and apply the same funding rules to all  
               local education agencies, addressing key problems with the  
               state's existing approach. In addition, all of the options  
               would encourage efficiency by requiring local budgets to  
               cover a notable share of total costs.  Finally, all three  
               options would be relatively simple to implement and easy  
               for districts and the public to understand. 

          4.   Problems with the existing program are not new.  The Bureau  
               of State Audits (BSA) released a report on the HTST program  
               in 2007, acknowledging many problems with the existing  
               program funding formula.  Some of the findings include:

               A.        The current funding mechanism prevents some  
                    school districts that did not receive HTST program  
                    funds in the immediately preceding fiscal year from  
                    receiving these funds because of the basis of  
                    allocation.

               B.        Allocation increases are not always consistent  








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                    with student population growth.  Some school districts  
                    have experienced dramatic increases in student  
                    population over the years; however, their allocations  
                    have not always increased at the same rate.

               C.        Most school districts had to use other funding  
                    sources to pay for some transportation costs and many  
                    reported it had varying levels of fiscal impact on  
                    other programs.




          5.   Related and prior legislation
               
               RELATED LEGISLATION

               SB 191 (Block) would provide for school districts to be  
               funded at a minimum of 50 percent of approved  
               transportation costs by the 2021-22 fiscal year, thereby  
               providing equalization funding for school districts that  
               are reimbursed at less than 50 percent.  The equalization  
               adjustments would occur over a seven-year period beginning  
               in 2015-16.  SB 191 passed this Committee on March 18, 2015  
               and is pending before the Senate Appropriations Committee.

               PRIOR LEGISLATION

               SB 1137 (Torres, 2014) nearly identical to SB 191, would  
               have provided for school districts to be funded at a  
               minimum of 50 percent of approved transportation costs by  
               the 2020-21 fiscal year.  SB 1137 passed this Committee on  
               April 9, 2014 but failed passage in the Assembly  
               Appropriations Committee.

               SB 1166 (Vidak, 2014) would have required school districts  
               to receive state reimbursement for the full cost of  
               home-to-school transportation of pupils through an  
               appropriation in the annual Budget Act.  SB 1166 failed  
               passage in this Committee on April 9, 2014.

            SUPPORT
          
          California Association of School Business Officials








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          California Association of School Transportation Officials
          School Transportation Coalition

            OPPOSITION
           
           None received.

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