BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                              Gloria Romero, Chair
                           2009-2010 Regular Session
                                        

          BILL NO:       ACR 54
          AUTHOR:        Brownley
          AMENDED:       May 11, 2009
          FISCAL COMM:   No             HEARING DATE:  July 8, 2009
          URGENCY:       No             CONSULTANT:Nancy Anton

           SUBJECT  :  K-12 Education Finance
          
           SUMMARY  

          This Concurrent Resolution resolves that it is the  
          Legislature's intent that California generate and allocate  
          sufficient funds to bring the per pupil spending up to or  
          into the top half of the national average and to a level  
          that accounts for the actual cost of educating California  
          pupils.  

           BACKGROUND  

          Under existing law, there are several components that  
          determine the level of funding provided to a local school  
          district including:

           1)   Revenue limits (base revenue funding)  . Revenue limit  
               funding for school districts is, in part, based on  
               average daily attendance (ADA), where ADA is  
               calculated by dividing the number of days of  
               attendance for all pupils enrolled in the district by  
               the number of instructional days in the district; a  
               day of attendance is generally defined as a minimum  
               number of instructional minutes (specific to grade  
               level) in a classroom setting with a certificated  
               employee of school district present.  This funding  
               computation uses the annual ADA reported by each  
               district in the last attendance year, or the current  
               or prior fiscal year, whichever is greatest.  Total  
               Revenue Limit (local property taxes plus state General  
               Fund) funding for a district is then calculated by  
               multiplying the district's set (per pupil) revenue  
               limit by ADA.





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           2)   Equalization funding  .  This is a mechanism for  
               equalizing school district revenue limit funding by  
               increasing the base revenue limit for some set of low  
               revenue limit districts.

           3)   Categorical funding  .  This is "targeted" funding that  
               focus resources and/or compliance requirement on  
               specified classes of students, schools or programs as  
               specified by the Legislature.

           4)   Other funding  .  In addition, local districts are  
               authorized to raise funds locally (e.g. local voter  
               approved tax increases).  They may also receive  
               federal funds, private grants and/or other specialized  
               sources of funding (loans, bail-outs, legal  
               settlements, etc.). 

           ANALYSIS
          
           This concurrent resolution  :

          1)   States Legislative intent that California generate and  
               allocate sufficient funds to education so that per  
               pupil spending:

               a)        Is brought up to or beyond the national  
                    average.

               b)        Accounts for the actual cost of educating  
                    California's diverse pupil population so that all  
                    pupils are prepared for college, careers and  
                    successful participation in our democratic  
                    institutions.

          2)   Includes a variety of findings and declarations  
               regarding California's current education finance  
               system.

           STAFF COMMENTS 

          Education Week published a ranking that showed California  
          47th among the states and District of Columbia in per pupil  
          expenditures on K-12 education when cost-of-living  
          differences across the states are taken into account.  The  
          National Education Association ranks California 34th among  
          the 50 states and District of Columbia in per pupil  




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          expenditures in 2007-08.  The US Census Bureau reported in  
          2008, that California was 29th among the 50 states and  
          District of Columbia in per pupil expenditures by public  
          schools in 2005-06, with per pupil spending on education  
          approximately 8% below the national average.

           SUPPORT  

          Association of California School Administrators
          California Association of School Business Officials
          California Federation of Teachers
          California School Boards Association
          California Teachers Association 
          Los Angeles County Office of Education
          Pajaro Valley Federation of Teachers
          Riverside County Schools Advocacy Association
          San Francisco Community College Faculty Union-AFT Local 21
          Small School Districts' Association

           OPPOSITION

           California Taxpayers' Association
          Howard Jarvis Taxpayers Association