BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           334 (Ducheny)
          
          Hearing Date:  05/28/2009           Amended: 04/23/09
          Consultant:  Dan Troy           Policy Vote: ED 5-0
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          BILL SUMMARY:   SB 334 would require the State Allocation Board  
          (SAB) to apply increases to the per pupil grant amount for new  
          construction funding authorized by Proposition 1D to the per  
          pupil grant amount for special day class students.
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                            Fiscal Impact (in thousands)

          Major Provisions         2009-10      2010-11       2011-12     Fund
           Special day class      $1,500     $3,000      $3,000    Bond*
          construction
                                                                  
          *Proposition 1D
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          STAFF COMMENTS: SUSPENSE FILE.
          
          Proposition 1D (AB 127, Nunez and Perata, Chapter 35/2006),  
          approved $7.3 billion in funding for K-12 education facilities,  
          of which $1.9 billion was designated for new construction.    
          Proposition 1D also specified increases (7% for elementary and  
          middle school pupils, and 4% for high school pupils) in the per  
          pupil grant amounts for new construction funding.  The  
          initiative, however, did not specify increases related to  
          special education pupils (special day class pupils), who are  
          funded based on the extent of disability (severe and nonsevere)  
          rather than by grade.  Current per pupil grants are $24,066 for  
          severe special education pupils and $16,095 for nonsevere  
          pupils.  Current per pupil grants for the traditional classroom  
          are $8,081 for K-6 pupils, $8,546 for grades 7-8, and $10,873  
          for grades 9-12.  Typically, districts are expected to provide a  
          50% match of grant funds, though "hardship" districts can  
          receive up to 100% of needed funding from the state.  

          This bill would require the SAB to apply any prospective  
          adjustments made to the traditional classroom grants to the  










          special education grants.  Under current law, the SAB may  
          increase traditional classroom grants annually up to 6 percent  
          to reflect increases in construction costs, but the SAB has no  
          authority to provide increases for special day class grants.  

          By increasing the grants for special day class construction,  
          this bill would increase the pressure on bond funds, potentially  
          reduce the number of projects completed through existing  
          proceeds, and create pressure for additional bonds.  According  
          to the Office of Public School Construction, this bill would  
          result in annual increased bond funding pressure of $3 million.   


          Similar legislation, SB 704 (Ducheny), was held under submission  
          by this committee in 2007.