BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           698 (Negrete McLeod)
          
          Hearing Date:  05/11/2009           Amended: 04/02/2009
          Consultant:  Dan Troy           Policy Vote: ED 8-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 698 would exempt funding for juvenile court  
          school apportionments from the deficit factors established for  
          the 2008-09 and 2009-10 fiscal years and would replace average  
          daily attendance (ADA) with average daily enrollment (ADE) as  
          the basis for funding.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2008-09      2009-10       2010-11     Fund
                                                                  
          JCS deficit restoration               $12,400          $21,900    
          General*

          Average daily enrollment           $7,500         $15,000  
          $15,000          General*

          *Counts toward meeting the Proposition 98 minimum funding  
          guarantee
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Juvenile court schools are public schools operated by county  
          offices of education in juvenile halls, juvenile ranches and  
          camps, and regional youth educational facilities.  Average  
          funding for the program would be just over $10,000 per unit of  
          average daily attendance for the 2008-09 fiscal year, though a  
          deficit factor included as part of the budget process has  
          reduced that figure.  

          The deficit factors established for the 2008-09 and 2009-10  
          fiscal years are 7.819% and 13.360%, respectively.  Over the two  
          fiscal years, the Department of Education estimates the costs to  
          total approximately $35 million.  











          Additionally, switching the unit of funding from ADA to ADE  
          would result in significant state costs, as under ADA, absences  
          are not funded while they would be under ADE.   Total annual  
          headcounts are typically in the range of 30,000 while ADA for  
          the 2008-09 fiscal year is estimated to be approximately 15,700.  
           The 30,000 figure is not a good estimate of average daily  
          enrollment, though, as many pupils cycle in and out of JCS  
          during the course of the year, often staying in the program for  
          less than 90 days.  Assuming an average daily absence rate for  
          JCS is approximately 10 percent, a switch from ADA to ADE would  
          cost approximately $15 million per year, though this figure  
          would be lower to the extent program funding is deficited.