BILL NUMBER: AB 691	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gilmore

                        FEBRUARY 26, 2009

   An act to amend Section 42238.1 of the Education Code, relating to
education finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 691, as introduced, Gilmore. Education finance: inflation
adjustment.
   Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county
pursuant to a specified formula that is based on the base revenue
limit of the school district for the prior year, adjusted for
inflation, and the average daily attendance for the school district,
as specified.
   This bill would make various technical, nonsubstantive changes in
the statute that sets forth the procedures for the calculation by the
Superintendent of Public Instruction of the annual inflation
adjustment for school districts.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 42238.1 of the Education Code is amended to
read:
   42238.1.  (a) For the 1986-87 fiscal year  ,  and each
 subsequent  fiscal year up to and including the 1998-99
fiscal year, the Superintendent  of Public Instruction
 shall compute an inflation adjustment equal to the product
of paragraphs (1) and (2):
   (1) Compute the sum of the following:
   (A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for districts of similar
type.
   (B) The amount, if any, per unit of average daily attendance
received by the district pursuant to Article 8 (commencing with
Section 46200) of Chapter 2 of Part 26  of Division 4  for
the prior fiscal year.
   (2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 1 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 1 of the second preceding fiscal year, as reported by the
Department of Finance.
   (b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the Superintendent  of Public Instruction  shall
compute an inflation adjustment equal to the product of paragraphs
(1) and (2):
   (1) Compute the sum of the following:
   (A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for districts of similar
type.
   (B) The amount, if any, per unit of average daily attendance
received by the district pursuant to Article 8 (commencing with
Section 46200) of Chapter 2 of Part 26  of Division 4  for
the prior fiscal year.
   (2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 10 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 10 of the preceding fiscal year, as  report 
 reported  by the Department of Finance.
   (c) This section shall become operative July 1, 1986.