BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2362 (Conway) - Necessary Small High Schools: Average Daily
Attendance.
Amended: July 6, 2012 Policy Vote: Education 8-0
Urgency: Yes Mandate: No
Hearing Date: August 6, 2012
Consultant: Jacqueline Wong-Hernandez
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2362 continues the ability of three school
districts to count pupils in grades 7 and 8 when calculating
their necessary small school (NSS) high school funding, as
specified. This bill is an urgency measure.
Fiscal Impact: Annual costs of approximately $2.5 million
General Fund to continue to allow three school districts to
claim ADA for pupils in grades 7 and 8 toward NSS high school
funding.
Background: Existing law defines an NSS as an elementary school
with an ADA of less than 101 or a high school with an ADA of no
greater than 300 in school districts that enroll a total of less
than 2,501 pupils. NSSs receive specified allowances based upon
the size of the small school as measured by number of teachers
and students and in lieu of revenue limited funding (general
purpose funding) that would usually be allocated per pupil in
attendance. (Education Code � 42285)
Existing law also specifies necessary small elementary schools
be funded based on their ADA for K-8, excluding pupils who
attend a junior high school for grades 7 and 8. Likewise, a
necessary small high school is funded on the basis of ADA for
grades 9-12.
Last year, AB 32 X1 (Blumenfield) Ch. 15/2011, provided, on a
one-time basis for the 2011-12 fiscal year, the ability of three
school districts to receive NSS funding, at the NSS high school
rate, for pupils in grades 7 and 8. (EC � 42285.5)
Proposed Law: AB 2362 allows Baker Valley Unified, Butte Valley
AB 2362 (Conway)
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Unified, and Scott Valley Unified school districts to continue
to count pupils in grades 7 and 8 when calculating their NSS
high school funding, and requires them to pursue any funding
deferral exemptions for which they may be eligible. This bill is
an urgency measure.
Staff Comments: Existing law allows necessary small high school
funding to be awarded only for ADA in grades 9-12. In 2011, the
California Department of Education (CDE) determined that four
school districts, subsequently amended down to three school
districts - Baker Valley Unified, Butte Valley Unified, and
Scott Valley Unified - that received necessary small high school
funding had been misreporting grade 7 and 8 ADA in calculations
for grades 9-12 ADA and receiving funding on that basis. As a
result of misreporting, those districts received approximately
$2.5 million in additional funds, as follows:
-------------------------------------------------------------
| District | County | School | Total NSS |
| | | | Funding |
|-----------------+----------+----------------+---------------|
|Baker Valley |San |Baker Jr. High |$515,549 |
|Unified |Bernardino| | |
| | | | |
|-----------------+----------+----------------+---------------|
|Butte Valley |Siskiyou |Butte Valley |$759,082 |
|Unified | |Middle | |
|-----------------+----------+----------------+---------------|
|Scott Valley |Siskiyou |Scott Valley |$1.24 million |
|Unified | |Junior High | |
-------------------------------------------------------------
This bill would allow the three school districts to continue to
receive that funding. Absent this bill, the state would cease
paying NSS funding for grades 7 and 8 in these districts,
resulting in cost savings of approximately $2.5 million per
year.
AB 2362 (Conway)
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