BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 537
                                                          Page  1

Date of Hearing:   April 21, 1999

                ASSEMBLY COMMITTEE ON EDUCATION 
                      Kerry Mazzoni, Chair
           AB 537 (Aroner) - As Amended: April 15, 1999
  
SUBJECT  :   School transportation.

  SUMMARY  :  Establishes an alternative formula for funding  
home-to-school transportation.  Specifically,  this bill  : 

1)Establishes increased home-to school transportation funding in  
  1999-2000 for districts meeting all of the following three  
  criteria:

   a)   Their current home-to-school transportation funding is  
     less than 15% of approved costs (based on 1997-98 data);

   b)   At least 50% of their students are eligible for free and  
     reduced price lunches (based on 1997 CBEDS);

   c)   The number of average daily boardings by district  
     students utilizing public transit as home-to-school  
     transportation in 1997-98 exceeded 30% of the district  
     CBEDS enrollment.

2)Provides that funding for these district(s) home-to-school  
  transportation approved expenses would be increased to the  
  statewide average per pupil funding allowance for  
  home-to-school transportation. 

  EXISTING LAW  

Provides that each school district or county office of education  
shall receive a home-to-school transportation allowance in the  
amount received in the prior fiscal year, but in no event in  
excess of the prior year's approved home-to-school  
transportation costs, increased by the amount provided in the  
annual Budget Act. Districts must receive an allowance in the  
prior year in order to qualify  
to receive an allowance in the current year.

Home-to-school transportation funding entitlement is based upon  
a "snapshot" taken in the early 1980s of existing programs at  
that time. A base funding level was established based upon the  








                                                          AB 537
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cost of the programs for that base year, and has been adjusted  
over time. Currently, California school agencies are funded for  
approximately 53% of their approved transportation costs.

  FISCAL EFFECT  : Increase of at least approximately $800,000 in  
transportation costs from General Fund Proposition 98 funding.

  COMMENTS  :   

  Arguments in support  .  According to the author, currently,  
California school agencies are funded for approximately 53% of  
their approved costs.  However, many districts are funded at a  
far lower level. Due to expansion into suburbs that were  
undeveloped 15 years ago, as well as the forced relocation of  
more than 450 students due to the implementation of class-size  
reduction, West Contra Costa Unified School District (WCCUSD)  
was funded at less than 12 cents on the dollar for its approved  
transportation costs in 1997-98 (most recent figures available).

District students utilize AC Transit buses to provide the bulk  
of their home-to-school transportation. These trips are offered  
by AC Transit at a significant discount, utilizing buses that  
would otherwise be idle during off-commute hours. But since most  
of the district's students are eligible for free and reduced  
price lunches, they cannot afford to access the AC Transit buses  
or provide their own transportation. 

As a result of these factors, district administrators are  
finding that the shortage of home-to-school transportation  
options is limiting student access to education. AB 537 will  
increase that access by equalizing to a statewide average  
funding for the district's transportation program

  Related legislation  . SB 120 (Costa), Chapter 492, Statutes of  
1995, and AB 2972 (Olberg), Chapter 194, Statutes of 1996,  
implemented separate equalization formulae. In the current  
session, SB 83 (Rainey), will fund districts that provide a  
transportation program but do not currently have home-to-school  
transportation entitlements to receive funding.

  Impact on the WCCUSD  .  At a 53% funding rate, West Contra Costa  
USD would have been eligible for $1.05 million in home-to-school  
funding in 1997-98, an increase of  $819,000 over the actual  
entitlement of $232,000.









                                                          AB 537
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  REGISTERED SUPPORT / OPPOSITION  :   (as of 4/16/99)

  Support  

West Contra Costa USD (Sponsor)

  Opposition  

None on file.
  
Analysis Prepared by  : Hal Geiogue / ED. / (916) 319-2087