BILL ANALYSIS                                                                                                                                                                                                    






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

          BILL NO:       AB 1724
          AUTHOR:        Chesbro
          INTRODUCED:    February 3, 2010
          FISCAL COMM:   Yes            HEARING DATE:  June 16, 2010
          URGENCY:       Yes            CONSULTANT:Daniel Alvarez

           SUBJECT  :   Necessary Small School Funding: Del Norte County  
          Unified School 
                               District.

           KEY POLICY ISSUE   

          Does the geographic isolation and school size of two  
          elementary schools in the Del Norte County Unified School  
          District (DNCUSD) warrant an exception to current law as it  
          relates to funding for necessary small schools?


           SUMMARY   

          This bill, an urgency measure, allows the DNCUSD to receive  
          necessary small school (NSS) funding for the (1) Gasquet  
          Mountain Elementary and (2) Margaret Keating Elementary  
          schools, even though the school district is too large for  
          these schools to qualify for this type funding.

           BACKGROUND  

          Current law allows school districts with less than 2,501  
          pupils in average daily attendance (ADA) to receive necessary  
          small school funding, in lieu of per ADA revenue limit  
          funding, for elementary schools that have fewer than 101 ADA  
          in grades K through 6.  Necessary small elementary schools  
          with fewer than 24.5 ADA, with at least one teacher, are  
          entitled to receive approximately $113,100 in lieu of the  
          revenue limit funding of their district; additional funding  
          would vary according to the number of teachers and ADA of  
          each school. 
          (Education Code  42280, et. seq.)

          School district funding is primarily based on the calculation  
          of its revenue limit (RL).  The RL is the basic general  



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          purpose money allocated based on ADA and is calculated  
          separately for each district.  Revenue limit income is a  
          combination of local property taxes and state funding, and  
          accounts for approximately two-thirds of a typical district's  
          revenues. Any increase in property taxes results in an offset  
          of state funds necessary to meet a district's calculated RL.





           ANALYSIS  

           This bill  , an urgency measure, allows the Del Norte County  
          Unified School District to receive necessary small school  
          funding for the (1) Gasquet Mountain Elementary and (2)  
          Margaret Keating Elementary schools.  Specifically, this  
          bill:

          1)   Deems the Gasquet Mountain and Margaret Keating  
               elementary schools of the Del Norte County Unified  
               School District as necessary small schools commencing  
               with the 2010-11 fiscal year.

          2)   Establishes that if the ADA of the Gasquet Mountain  
               Elementary School or the Margaret Keating Elementary  
               School exceeds 100, the school shall not be entitled to  
               necessary small school funding.

          3)   Contains legislative findings and declarations related  
               to the circumstances necessitating the switch to  
               necessary small school funding status for the  
               aforementioned elementary schools. 

           STAFF COMMENTS  

           1)   Need for the bill  .  According to the author, both of the  
               elementary schools are in remote areas of the district,  
               and that if the school district does not receive  
               necessary small school funding for the schools, it may  
               be forced to close the schools, forcing children grades  
               K-5 to an hour long bus ride along windy mountain roads,  
               especially treacherous in the winter months when travel  
               is dangerous for all.  This also would have a negative  
               impact in having regular parental involvement in their  
               children's schools.




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           2)   School locations are remote  .  The Gasquet Mountain  
               Elementary School (approximately 35 enrolled students)  
               is located 20 miles east of Crescent City, serves a  
               small community with the next closest elementary school  
               being 24 miles away.  The Margaret Keating Elementary  
               school (approximate enrollment is 92 students) is also  
               located in a remote rural area, 20 miles south from  
               Crescent City, with the closest elementary school 23  
               miles away.   Both schools serve students in grades K-5.  
               The roads toward Crescent City are intermittently closed  
               during the winter months due to mud and rock slides and  
               during more inclement weather for road repairs. 

               Both schools are located within the Del Norte County  
               Unified School District which has an approximate ADA of  
               3,400.  

           3)   Funding comparison  .  The Assembly appropriations  
               Committee developed a table which shows the funding  
               levels the DNCUSD would receive under a regular RL  
               approach, the NSS approach, and the difference between  
               the two levels of funding: 





 ---------------------------------------------------------  -------------------------------------------------------- 

           4)   Prior and related legislation  .  

                        SB 667 (Hollingsworth), Chapter 559, Statutes  
                    of 2007, appropriated $55,000 from the General Fund  
                    to the Valley Center-Pauma Unified School District  
                    for purposes of allowing the school district to  
                    continue to operate the Palomar Mountain Elementary  
                    School, which through the 1999-2000 school year was  
                    part of the Pauma Elementary School District and  
                    qualified that district to receive necessary small  
                    school funding for the school.

                        SB 1367 (Ducheny), Chapter 250, Statutes of  
                    2006, revised and clarified provisions of statute  
                    governing eligibility for necessary small school  
                    funding, including authorization for one elementary  
                    school and one high school in the Coachella Valley  
                    Unified School District to continue to receive  



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                    necessary small school funding without regard to  
                    the overall size of the district, provided that the  
                    ADA of each school remains less than 287.

                        SB 268 (Knight), Chapter 24, Statutes of 1998,  
                    authorized the Sierra Sands Unified School District  
                    to receive necessary small school funding for the  
                    Rand Elementary School despite having a district  
                    ADA of approximately 6,200. This bill was sponsored  
                    by the Sierra Sands Unified School District, which  
                    reported that the alternative to keeping the Rand  
                    School open would require its student body to  
                    travel over two hours per day on a school bus. In  
                    this instance, the district said the loss of  
                    Federal Impact Aid eliminated its ability to fund  
                    the program from its general fund resources.

           SUPPORT
           
          Del Norte County Unified School District
          Small School Districts' Association
          California School Boards Association

           OPPOSITION
           
          None received.