BILL ANALYSIS
AB 1611
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1611 (Budget Committee)
As Amended October 7, 2010
2/3 vote. Urgency
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|ASSEMBLY: | |(April 22, |SENATE: | |(October 7, |
| | |2010) | | |2010) |
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(vote not relevant)
Original Committee Reference: BUDGET
SUMMARY: Suspends the Proposition 98 minimum funding guarantee
for school districts and community colleges for fiscal year (FY)
2010-11.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Makes findings and declarations that the Proposition 98
minimum required spending level for school districts and
community colleges for FY 2010-11, derived from the
application of the constitutional funding requirements related
to the minimum funding obligation for 2008-09, and including
allocation of maintenance factor in FYs 2009-10 and 2010-11,
exceeds the state's available revenues for this purpose in
2010-11.
2)Invokes the provision of the state constitution that allows
the Legislature to suspend the Proposition 98 minimum required
spending level for school districts and community colleges for
FY 2010-11 as calculated by subdivision (b) of Section 8 of
Article XVI of the California Constitution.
3)Specifies the amount of state support that will be provided to
school districts and community colleges in FY 2010-11 as $49.6
billion. Provides that this level shall not be decreased
without subsequent invocation of the provision of the state
constitution that allows the Legislature to suspend the
Proposition 98 minimum guarantee.
4)States that the amount of maintenance factor created in
2010-11 shall be calculated pursuant to the Constitution and
shall be added to the adjusted maintenance factor outstanding
AB 1611
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as of the end of 2009-10, less the amount of maintenance
factor allocated in the 2010-11 fiscal year.
5)Urgency Clause. Declares this bill take effect immediately as
an urgency statute.
EXISTING LAW : Subdivision (b) of Section 8 of Article XVI of
the California Constitution requires the state to spend a
minimum amount of funding on school districts and community
colleges every fiscal year, based on a specific calculation that
considers enrollment, prior-year education appropriations, the
growth of the economy and growth of General Fund revenues.
Subdivision (h) of Section 8 of Article XVI of the California
Constitution allows for the suspension of subdivision (b) for
one year by the enactment of an urgency statute separate from
the budget bill. When the state suspends the Proposition 98
minimum funding guarantee, the Proposition 98 formula ensures
that the state eventually gets back to the funding level that
would have existed had the state not suspended the guarantee.
AS PASSED BY THE ASSEMBLY , this bill was a vehicle for 2010
Budget Legislation.
Fiscal Effect : This bill suspends, for FY 2010-11, the
requirement that the state spend a specific minimum amount on
K-14 education, (the minimum Proposition 98 funding guarantee),
which is estimated to be approximately $54 billion.
Analysis Prepared by : Misty Feusahrens / BUDGET / (916)
319-2099
FN: 0007233