BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 191|
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THIRD READING
Bill No: SB 191
Author: Wright (D)
Amended: 4/20/09
Vote: 21
SENATE EDUCATION COMMITTEE : 8-0, 4/22/09
AYES: Romero, Huff, Alquist, Hancock, Liu, Padilla,
Simitian, Wyland
NO VOTE RECORDED: Maldonado
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Charter schools: funding
SOURCE : Author
DIGEST : This bill provides that the application of a
modified charter school funding formula does not apply to
charter schools that convert to charter schools on or after
July 1, 2010, or to charter schools that are independently
governed and operated by a nonprofit public benefit
corporation. The bill provides for such charter schools to
receive general-purpose funding, as specified. The bill
declares that these provisions do not prelude a charter
school or unified school district from agreeing to an
alternative funding formula.
ANALYSIS : Existing law generally calls for charter
schools to receive general purpose funding per pupil based
on statewide averages of school district general purpose
CONTINUED
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(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
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.
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 average, but
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/4/09)
California School Boards Association
Los Angeles Unified School District
San Francisco Unified School District
DLW:nl 5/4/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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