BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 191|
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                              UNFINISHED BUSINESS


          Bill No:  SB 191
          Author:   Wright (D)
          Amended:  7/15/09
          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 

           SENATE FLOOR  :  36-0, 5/11/09 (Consent) 
          AYES:  Aanestad, Alquist, Ashburn, Benoit, Cogdill,  
            Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny,  
            Dutton, Florez, Hancock, Harman, Hollingsworth, Huff,  
            Kehoe, Leno, Liu, Lowenthal, Maldonado, Negrete McLeod,  
            Oropeza, Padilla, Pavley, Romero, Runner, Steinberg,  
            Strickland, Walters, Wiggins, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Calderon, Cedillo, Simitian

           ASSEMBLY FLOOR  :  74-0, 8/27/09 (Consent)  - See last page  
            for vote


           SUBJECT  :    Charter schools:  funding

           SOURCE  :     Author


           DIGEST  :    This bill provides that the application of a  
          modified charter school funding formula does not apply to  
                                                           CONTINUED





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          charter schools that convert to charter schools on or after  
          January 1, 2010.  The bill provides for such charter  
          schools to receive general-purpose funding, as specified.   
          The bill declares that these provisions do not preclude a  
          charter school or unified school district from agreeing to  
          an alternative funding formula.

           Assembly Amendments  restrict the bill's provisions to  
          charter schools that convert to charter schools on or after  
          January 1, 2010.

           ANALYSIS  :    Existing 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  
          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  







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          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  
          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


           ASSEMBLY FLOOR  :
          AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Feuer, Fletcher, Fong,  
            Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,  
            Hagman, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Ruskin, Salas, Silva, Skinner, Smyth,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada
          NO VOTE RECORDED: Evans, Fuentes, Hall, Saldana, Bass








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          DLW:nl  8/28/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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