BILL ANALYSIS                                                                                                                                                                                                    






               SENATE COMMITTEE ON EDUCATION
                     Dede Alpert, Chair
                 1999-2000 Regular Session
                              

BILL NO:       AB 537
AUTHOR:        Aroner
AMENDED:       June 2, 1999
FISCAL COMM:   Yes            HEARING DATE:  July 14, 1999
URGENCY:       No             CONSULTANT:James Wilson



  SUMMARY  

This bill allows a school district that meets specified  
criteria to receive a home-to-school transportation  
allowance based upon an alternative formula. 

  BACKGROUND 

Current law provides for partial reimbursement of the  
actual costs of school districts that provide  
home-to-school transportation.  Due to the caps placed on  
individual district reimbursement, and limited funding,  
most districts do not receive full reimbursement of their  
costs.   

The law also allows school districts that meet specified  
criteria to receive an annual supplemental allowance in  
addition to the normal allowance of transportation funding.  
 To qualify for supplemental funding, a district must meet  
the following criteria (which are set forth in Education  
Code Section 41862):

1)   The district must transport over 33% of their pupils.
2)   The district's cost per mile may not exceed statewide  
     average, unless weather or terrain justifies higher  
     costs.
3)   The district's prior year transportation costs per  
     pupil must exceed $130.

  ANALYSIS  

  This bill:  





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1)   Allows any school district that meets the following  
     criteria to receive a home-to-school transportation  
     allowance equal to the district's enrollment  
     multiplied times the statewide average per pupil  
     allowance for home-to-school transportation.  To  
     qualify, a district must meet all of the following  
     criteria:

     a)        At least 50% of the district's pupils  
          qualify for free or reduced price meals.
     b)        The district's home-to-school transportation  
          entitlement was less than 15% of its approved  
          expenses in the documentation of the 1997-98  
          state apportionment.
     c)        The number of average daily boardings by  
          district pupils using public transit as  
          home-to-school transportation in 1997-98 exceeds  
          30% of the district's enrollment.

2)   Limits the annual alternative allowance that may be  
     received by any district to no more than that  
     district's actual cost of that year.

3)   Provides for the alternative home-to-school  
     transportation allowance to become effective for  
     1999-2000 and later years, only if funds are included  
     in the Budget Act for its purposes.

4)   Limits the annual expenditure under this alternative  
     formula to a total of $500,000.

  STAFF COMMENTS  

  1)   Who benefits?    Previous analysts have indicated that  
     the West Contra Costa Unified School District  
     (formerly known as Richmond Unified) appears to be the  
     only district that would qualify to receive this  
     alternative transportation allowance.  The Department  
     of Education reports that it cannot determine if West  
     Contra Costa is the only district because the  
     Department does not collect information on the number  
     of "daily boardings by pupils ?who use public  
     transit."  The Department of Education does note,  
     however, that if the word "entitlement" is not  
     narrowly defined, that the West Contra Costa  
     district's 1997-98 "entitlement" will exceed 15% of  




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     its costs, thus disqualifying the district.  To avoid  
     such disqualification, the district's "entitlement"  
     would have to exclude the transportation funding it  
     received from transportation equalization formulas and  
     supplemental grant funding.

  2)   Why base the allowance on all students in the  
     district?    The conventional home to school allowance,  
     inadequate as it may be, provides the lesser of the  
     district's costs or entitlement based on an historical  
     "base" year.  No student count is used, and it may be  
     that the district doesn't know how many students are  
     transported through district subsidized arrangements.  
     Still, it seems strange to base a home-to-school  
     transportation allowance on a number of pupils who  
     may, or may not, be transported.

3)   
































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  Staff recommends  the following technical amendments to make  
     the formula of the bill work as intended:

On page 2, line 7, after "(b)" insert:   shall be

     On page 2, line 9, after "the" insert:   prior year

     On page 2, lines 19 and 20  strike:  
                lunches according to data from the 1997  
               CBEDS.

      And insert:  meals reported in 1997 to the  
     Superintendent of Public 
                        Instruction.  

  
  SUPPORT  

None received

  OPPOSITION  

None received