BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1811
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1811 (Bonilla)
          As Amended  August 24, 2012
          Majority vote
           
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          |ASSEMBLY:  |48-24|(May 10, 2012)  |SENATE: |24-10|(August 29,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    ED.
           
           SUMMARY:   Changes the method for calculating general purpose 
          funding for a conversion charter high school established after 
          January 1, 2013, in a unified school district.  Specifically, 
           this bill  :

          1)Provides that, commencing with the 2013-14 fiscal year, 
            general purpose funding for a conversion charter high school 
            in a unified school district shall be equal, for the first 
            three years, to the current year base revenue limit of the 
            sponsoring school district and adjusted by the current year 
            deficit factor and other funding adjustments, if any.

          2)Provides that, beginning in the fourth year of operation, the 
            general purpose funding for a conversion charter high school 
            in a unified school district shall be based on the statewide 
            average revenue limit for high schools.
           
          The Senate amendments  :

          1)Repeal the requirement that general purpose funding for 
            conversation charter high schools in unified school districts 
            be based on the amount of general purpose funding per unit of 
            average daily attendance (ADA) provided by the district to the 
            school in the year prior to conversion and add the method of 
            calculation described above.

          2)Provide that the provisions of the bill become inoperative on 
            either of the following, whichever comes first:

             a)   July 1, 2018; or,

             b)   The effective date of a measure enacting comprehensive 
               school finance reform.








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          3)Re-enact current provisions of law related to the funding of 
            conversion charter schools in unified school districts 
            effective on either of the following, whichever comes first:

             a)   July 1, 2018; or,

             b)   The effective date of a measure enacting comprehensive 
               school finance reform.

           EXISTING LAW  provides for a general purpose entitlement plus a 
          categorical block grant for charter schools.  The general 
          purpose entitlement is based on the statewide average revenue 
          limits for elementary school districts, unified school 
          districts, and high school districts.  The general purpose 
          entitlement provides charter schools with the following amounts 
          of funding:

          1)The statewide average elementary school district revenue limit 
            per ADA multiplied by the ADA in kindergarten and grades 1 
            through 5, inclusive.

          2)The statewide average unified school district revenue limit 
            per ADA multiplied by the ADA in grades 6, 7, and 8.

          3)The statewide average high school district revenue limit per 
            ADA multiplied by the ADA in grades 9, 10, 11, and 12.

          The categorical block is based on the statewide average amount 
          of funding per ADA for specified categorical programs.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs.
           
          COMMENTS  :  This bill addresses a problem that occurs when a 
          charter school serving pupils in any of grades 9 through 12, 
          inclusive, is established in a unified school district that is 
          not a basic aid district and that has not converted all of its 
          high schools to charter schools.  Specifically, because the 
          charter school's general purpose entitlement is funded from the 
          school district's revenue limit, the unified school district 
          generally ends up subsidizing a portion of the charter school's 
          general purpose entitlement.  The current formula works as 
          follows:









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          1)For purposes of computing its own revenue limit apportionment, 
            the unified district adds the ADA of the students in the 
            charter school that would otherwise attend a district school 
            to its own ADA.

          2)The district's revenue limit apportionment is calculated by 
            multiplying its revenue limit per ADA times the ADA computed 
            in step 1.

          3)The charter school's general purpose entitlement is computed 
            by multiplying the statewide average revenue limit for high 
            school district by the charter school ADA.

          4)The amount computed in step 3 is subtracted from the amount 
            computed in step 2.  This amount becomes the district's 
            revenue limit apportionment.

          This methodology results in the unified school district 
          transferring to the charter high school a greater amount per ADA 
          than the district receives per ADA in its revenue limit 
          apportionment. This is because the charter school general 
          purpose entitlement per ADA is greater than the district's 
          revenue limit per ADA.  This bill changes this by providing that 
          the general purpose entitlement for the conversion high school 
          shall be based on the revenue limit of the sponsoring district 
          for the first three years of operation. 


           Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087 


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