BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1724
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          ASSEMBLY THIRD READING
          AB 1724 (Chesbro)
          As Introduced  February 3, 2010
          2/3 vote.  Urgency 

           EDUCATION           9-0         APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Brownley, Nestande,       |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Ammiano,                  |     |Bradford, Charles         |
          |     |Arambula, Carter, Eng,    |     |Calderon, Coto, Davis, De |
          |     |Miller,                   |     |Leon, Hall, Harkey,       |
          |     |Norby, Torlakson          |     |Miller, Nielsen, Norby,   |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Deems the Gasquet Mountain Elementary School and the  
          Margaret Keating Elementary School in the Del Norte County  
          Unified School District (DNCUSD) as necessary small schools.   
          Specifically,  this bill  :  

          1)Finds and declares that the DNCUSD is considered to be a large  
            unified school district that serves pupils from a wide and  
            varied geographic area. Within these areas, Gasquet Mountain  
            Elementary School and Margaret Keating Elementary School each  
            have an average daily attendance (ADA) of fewer than one  
            hundred.  Pupils presently attending Gasquet Mountain  
            Elementary School and Margaret Keating Elementary School would  
            have to travel long distances over hazardous terrain in order  
            to attend other schools within the district.

          2)Deems the Gasquet Mountain Elementary School and the Margaret  
            Keating Elementary School as necessary small schools and  
            specifies that these two schools shall receive necessary small  
            school apportionments commencing with the 2010-11 fiscal year.

          3)Specifies that if the amount of ADA of the Gasquet Mountain  
            Elementary School or the Margaret Keating Elementary School  
            exceeds 100, that school shall no longer be entitled to  
            receive necessary small school apportionment.  

          4)Provides that due to the unique circumstances related to the  








                                                                  AB 1724
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            DNCUSD, the Legislature finds and declares that a general  
            statute cannot be made as required by Section 16 of Article IV  
            of the California Constitution.

          5)Contains an urgency clause in order to make necessary small  
            school apportionments available to the DNCUSD prior to the  
            2010-11 school year.  

           EXISTING LAW  establishes alternative, generally higher, funding  
          allocations for school districts with one or more schools that  
          meet specified eligibility criteria for necessary small  
          elementary schools and necessary small high schools.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, General Fund cost of $134,072.

          COMMENTS  :  Current law defines a necessary small school as an  
          elementary school with an ADA of less than 101, or a necessary  
          small high school with an ADA of no greater than 300, in school  
          districts with an ADA of less than 2,501 pupils.  Necessary  
          small schools receive specified allowances based upon the size  
          of the small school as measured by the number of teachers and  
          students, and in lieu of revenue limited funding that would  
          usually be allocated per pupil in attendance.  Current law also  
          specifies that once a high school is determined to be a  
          necessary small high school that designation may only be changed  
          upon review of the school qualification every five years.  The  
          following chart shows the 2009-10 funding allocations for  
          necessary small elementary schools:

             ---------------------------------------------------------- 
            |                  |                    |                  |
            |    Number of     |   Average Daily    | Amount (2009-10) |
            |     Teachers     |     Attendance     |                  |
            |------------------+--------------------+------------------|
            |        1         |       1 - 24       |     $113,098     |
            |------------------+--------------------+------------------|
            |        2         |      25 - 48       |     $226,197     |
            |------------------+--------------------+------------------|
            |        3         |      49 - 72       |     $339,296     |
            |------------------+--------------------+------------------|
            |        4         |      73 - 96       |$452,395          |
            |                  |                    |                  |
             ---------------------------------------------------------- 








                                                                  AB 1724
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          Several school districts have been statutorily allowed to  
          receive necessary small school allowances based upon local  
          circumstances even though they do not meet general qualification  
          requirements, including Death Valley Unified, Alum Rock Union  
          Elementary School District, Patterson Joint Unified School  
          District, and Sierra Sands Unified School District.  Several  
          other districts have also received statutory necessary small  
          high school designations.  In 2007, earlier versions of SB 667  
          (Hollingsworth), Chapter 559, Statutes of 2007 would have  
          enabled the Palomar Mountain Elementary School, formerly in the  
          Pauma Elementary School District, to continue receiving  
          necessary small schools funding following the merger of the  
          district with the Valley Center Union Elementary School  
          District, causing the district enrollment to exceed 2,501.  The  
          bill signed by the Governor instead appropriated $55,000 to the  
          district without the necessary small school designation.

          According to the DNCUSD, several Del Norte County school  
          districts and the County Office of Education unified in 1964,  
          which has increased efficiencies by having one school board and  
          one superintendent.  The district has an enrollment of 3,418  
          pupils and a budget of $34.6 million with 11 schools.  The  
          district is currently experiencing a $2.9 million budget deficit  
          with external pressure to close two schools.  The Mountain  
          Elementary School, with an enrollment of 32 pupils, is a  
          kindergarten through grade 5 (K-5) school located in Gasquet,  
          approximately 19 miles east of Crescent City.  Margaret Keating  
          Elementary School, with an enrollment of 86 pupils, is also a  
          K-5 school located in Klamath, approximately 20 miles south of  
          Crescent City.  According to the superintendent of DNCUSD, both  
          schools are located in hard to reach areas.  Bussing kids to  
          Crescent City schools would take between 30 to 60 minutes from  
          Gasquet and 30 to 50 minutes from Klamath through windy forest  
          roads that is susceptible to mud and rock slides during rainy  
          weather.  Road repairs during non-winter months could also cause  
          delays.  The DNCUSD superintendent further states, "These  
          communities have already seen their middle school aged children  
          transferred to in-town schools.  We do not believe the youngest  
          children should be subject to this commute."  

          This bill would deem the Mountain Elementary School and the  
          Margaret Keating Elementary School as necessary small schools,  
          making them eligible for necessary small school funding in lieu  








                                                                  AB 1724
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          of district revenue limit funding.  With an estimated ADA of  
          29.5, Mountain Elementary School would generate $147,913 with a  
          revenue limit of $5,014 per ADA, but would receive $226,197 as a  
          necessary small school.  With an estimated ADA of 79.1, Margaret  
          Keating Elementary School would generate $396,607 in revenue  
          limit funding but would receive $452,395 as a necessary small  
          school.  The district gains $134,072 by designating these two  
          schools as necessary small schools.  The benefit gained by  
          necessary small school funding is due in part to low revenue  
          limit funding during this budget crisis.  The district should  
          consider whether the necessary small school designation is still  
          an advantage when revenue limit funding increases during better  
          budget times.  The necessary small school designation is  
          permanent unless future legislation changes the designation or  
          when the district ADA reaches the ceiling of 100 for necessary  
          small school eligibility as specified by this bill.  This bill  
          also contains an urgency clause to enable the DNCUSD to receive  
          necessary small school funding in the 2010-11 fiscal year.  

          Writing in support of the bill, the Small School Districts'  
          Association states, "After Proposition 13 and restructuring  
          necessary small school funding in SB 813 of 1983, necessary  
          small school funding was limited to school districts with 2500  
          or fewer students.  The effect of the SB 813 provisions is to  
          deny funding for large geographic school districts that have  
          more than 2500 students but also have very remote schools.   
          Individual legislation during past years have addressed this  
          issue for school districts in Imperial, Santa Clara and other  
          counties within the state.  AB 1724 is a continuation of the  
          policy that the supplemental funding be addressed on a  
          case-by-case basis."


           Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087  



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