BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: SB 191
AUTHOR: Wright
AMENDED: April 20, 2009
FISCAL COMM: Yes HEARING DATE: April 22, 2009
URGENCY: No CONSULTANT: James Wilson
SUBJECT : School Funding: Charter Schools
SUMMARY
This bill limits the application of a modified charter
school funding formula to schools that convert to charter
status in unified school districts between July 1, 2005 and
July 1, 2010.
BACKGROUND
Current law generally calls for charter schools to receive
general purpose funding per pupil based on statewide
averages of school district general purpose (i.e. "revenue
limit") funding per pupil. The charter school funding for
pupils in grades K - 5 is equal to statewide averages for
elementary school districts. Charter school funding for
pupils in grades 6 through 8 is based on statewide averages
for unified districts and the funding for grades 9 through
12 is based on high school district averages. Because
high school costs tend to be higher than elementary school
costs, district averages are higher for high school
districts than they are for elementary or unified
districts. This average cost differential meant that, until
2005, charter high schools in unified school districts were
often found to have a greater entitlement to general
purpose funding, paid out of district funds, than the
district was entitled to receive.
SB 319 (Migden), Chapter 355 of 2005, established a new
basis for funding charter high schools that were converted
to charter status in unified school districts after June
30, 2005, and phased in adjustments of unified district
funding to cover the differential in districts with
charters that had been created earlier. The new funding
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formula only affected the funding of schools that converted
to charter schools in unified districts, while "start-up"
charters, and schools in elementary and high school
districts continued to receive funding based on statewide
averages. The new formula requires that unified districts
certify the per pupil funding level received by a
conversion charter school in the year prior to its
conversion to charter status. The certified funding level
then becomes the basis of that charter school's per pupil
general purpose entitlement in future years. Base amounts
are required to be increased for COLA and other revenue
limit adjustments received by the unified district in the
future. Nothing in current law allows the charter
entitlements to be adjusted for decreases in district
funding.
ANALYSIS
This bill:
1) Limits the requirement to base conversion charter
school funding in a unified school district on
pre-charter district allocation to schools converting
to charter status between July 1, 2005 and July 1,
2010.
2) Provides that after June 30, 2010, a school in a
unified district that is converted to charter status
shall be entitled to receive general purpose funding
per pupil based on statewide averages of school
district general purpose (i.e. "revenue limit")
funding per pupil, as is currently the case for other
charter schools.
3) Provides that nothing in this bill prevents a charter
school or unified school district from agreeing to an
alternative funding formula.
STAFF COMMENTS
1) Need for the bill . The alternative funding formula
established by SB 319 for conversion charter schools
in unified school districts has apparently substituted
one problem for another. Unified districts are no
longer required to provide conversion charter schools
with per pupil funding based on a high school district
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average, but budget cuts have reduced the districts'
ability to continue certified levels of support for
their charter schools and no provision is made for
reduction of the charter funding.
2) Future funding . As amended, this measure will provide
that only those schools chartered between July 1, 2005
and July 1, 2010 will receive their general purpose
funding under the process established by SB 319 in
2005. Schools chartered after June 30, 2010 will
receive general purpose funding under the pre-SB 319
formula that is based on the revenue limits of three
types of school districts, unless the schools and
their charter authorizing districts mutually agree to
an alternative formula as allowed by this bill.
SUPPORT
California School Boards Association
Los Angeles Unified School District
San Francisco Unified School District
OPPOSITION
None received.