BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1032
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          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 1032 (Gordon) - As Amended:  May 1, 2013 

          Policy Committee:                              Education  
          Vote:4-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill establishes guidelines for a school district to follow  
          when determining available school facilities for charter schools  
          as required under Proposition 39 (2000).  Specifically, this  
          bill: 

          1)Requires a school district to give the same degree of  
            consideration to pupils attending schools operated by the  
            district as pupils attending charter schools.  Further  
            requires a district to consider both of the following: 

             a)   The impact of the facilities on pupils attending schools  
               operated by the district and the in-district students  
               attending the charter school.  Requires the district, in  
               considering this impact, to do both of the following: 

               i)     Seek to minimize disruption to the educational  
                 program of pupils attending schools operated by the  
                 district and the in-district students attending the  
                 charter school.  
               ii)    Avoid moving pupils attending district schools. 

             b)   The useable space at the comparison schoolsites operated  
               by the district as well as usable space at facilities owned  
               or leased by the charter school when considering reasonably  
               equivalent facilities for the location of the charter  
               school.  

          2)Prohibits space that cannot be used for educational purposes  
            due to safety concerns, topography, or lack of improvement  
            from being defined as useable space.  This measure further  








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            requires districts, when determining conditions reasonably  
            equivalent for charter schools, to exclude specialized  
            classrooms and non-teaching space at the comparison  
            schoolsites, including space that is used solely by private  
            organizations, as specified.  

           FISCAL EFFECT  

          1)To the extent charter schools are unable to obtain school  
            facilities under Proposition 39 due to the provisions of this  
            bill, there will be GF/98 and school bond cost pressure,  
            likely in the low millions to tens of millions of dollars, to  
            either increase current charter school facility program  
            allocations or increase charter school general purpose funding  
            to mitigate increased facility costs.  

          2)The 2012 Budget Act allocated $92 million GF/98 for the  
            Charter School Facility Grant program.  This program is  
            currently undersubscribed and usually has annual carryover  
            funds available for other K-14 purposes.  

           SUMMARY CONTINUED
           
          1)Specifies a school district is not required to provide  
            additional facilities to a charter school if the charter  
            school owns or leases facilities for the year in which it  
            seeks allocation of facilities, and the owned or leased  
            facilities are able to accommodate in-district students, as  
            specified.  

           COMMENTS  

           1)Background  .  A charter school is a public school that may  
            provide instruction in any of grades K-12. It is usually  
            created or organized by a group of teachers, parents and  
            community leaders or a community-based organization. A charter  
            school may be authorized by an existing local public school  
            board, county board of education, or SBE.  According to the  
            State Department of Education (SDE), there were 1,062 charter  
            schools (including three statewide benefit charters and 33  
            approved by SBE) with an enrollment of 456,000 pupils in  
            2012-13.

            Proposition 39, the Smaller Classes, Safer Schools, and  
            Financial Accountability Act, was passed by voters in 2000.   








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            The proposition required each K-12 school district to provide  
            charter schools with facilities sufficient to accommodate  
            charter school in-district students in conditions reasonably  
            equivalent to those in which the students would be  
            accommodated if they were attending other public schools in  
            the district.  

           2)Purpose  .  Proposition 39 authorized the State Board of  
            Education (SBE) to adopt regulations implementing this  
            initiative, including, but not limited to, defining the terms  
            average daily classroom attendance, conditions reasonably  
            equivalent, in-district students, and facilities costs, as  
            well as establishing procedures and timelines for  
            reimbursement of charter school facilities.  The SBE adopted  
            regulations in 2006 and 2008.    

            Since the passage of Proposition 39, there have been numerous  
            instances of litigation between school districts and charter  
            schools regarding the implementation of the initiative.   
            Specifically, the author states: "Currently, if a school  
            district is required to count space that is not useable as  
            part of the square footage of the site, it must then allocate  
            the same number of square feet to a charter school.  This  
            [provision] results in a lopsided calculation such that the  
            charter school has a greater right to useable space than that  
            afforded students attending district operated schools.  While  
            it may seem obvious that space that is not useable should not  
            be considered, it is nonetheless the source of frequent  
            dispute that existing law does not directly address."

            The California School Boards Association (CSBA), sponsor of  
            this bill, argue that some court rulings have "disadvantaged  
            district students and granted charter students a right to a  
            greater amount of space than that provided to district  
            students."  CSBA further contends this measure will "protect  
            districts students from unnecessary disruption by extending  
            the same protection already enjoyed by charter school students  
            - not moving students unnecessarily."  This bill establishes  
            guidelines for school districts to follow in determining  
            facilities for charter schools under Proposition 39.  


           3)Proposition 39 litigation  .  Since the passage of Proposition  
            39, there have been challenges by both school districts and  
            charter schools regarding its implementation.  School  








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            districts have challenged the definition of reasonable  
            equivalent school facilities, the issue of providing  
            contiguous school facilities, and the definition of useable  
            space.  The two most recent lawsuits relevant to this measure  
            are as follows:


             a)   Los Angeles Intern, Charter High School v. Los Angeles  
               Unified School District (LAUSD) (2012):  In October 2012,  
               the Court of Appeal upheld a lower court's decision that  
               LAUSD complied with its Proposition 39 obligations and did  
               not abuse its discretion by not offering facilities at the  
               specific high school where the charter high school desired  
               to be located.  Specifically, the court determined the  
               district complied with the Education Code to "make  
               reasonable efforts" to provide a charter school with  
               facilities "near to where the charter wishes to locate."   
               The court further stated this statutory provision does not  
               obligate LAUSD to "place a charter school in the exact  
               location the charter school desires."  


               The court also acknowledged regulatory language requiring a  
               school district to give the same consideration to both  
               students in its own district-operated programs and the  
               in-district students attending the charter school. In this  
               case, accommodating the charter school would have required  
               LAUSD to move large numbers of students in the middle of  
               the academic year to other classes or to other schools;  
               such a move, the court reasoned, would disrupt the  
               students' instructional program, putting the students in  
               the district-operated program at a potential academic  
               disadvantage.  Based on this circumstance, the court  
               concluded that the charter school was not entitled to  
               facilities at the specific location it desired because  
               doing so would have required LAUSD to disregard the needs  
               of its own students in favor of the charter school's  
               students.  This bill requires a school district to consider  
               the effect providing a facility to a charter school would  
               have on in-district students, as specified.   



             b)   Bullis Charter School v. Los Altos School District  
               (LASD)(2011).  The Court of Appeals ruled LASD did not  








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               accurately compare the usable space when making a  
               facilities offer to Bullis Charter School.  Specifically,  
               the court ruled the multipurpose room the charter school  
               built on the district facility site did not count as space  
               provided by the district (under Proposition 39).   
               Therefore, LASD was required to provide additional space or  
               access to a multipurpose room for the charter school in  
               order to meet Proposition 39 requirements.  This bill  
               requires a school district to consider usable space at the  
               comparison schoolsite as well as usable space at a  
               facilities leased or owned by the charter school.    


           4)Opposition  .  The California Charter School Association  
            Advocates (CCSAA) argue this measure will have a negative  
            fiscal effect on charter schools.  Specifically, it states if  
            this measure were to pass "more charter schools will be forced  
            to seek funding elsewhere for a school facility, and more  
            charter schools will be forced to spend more of their [general  
            purpose] funding to pay for the classroom itself."  



           5)Charter schools ability to obtain school facilities  .   
            According to the Legislative Analyst's Office, there are  
            various state and federal programs that provide grants and  
            other financial support to charter schools for startup and  
            facility needs. The figure below details the governor's  
            charter school facilities proposals in the 2013-14 fiscal  
            year.  It also displays programs that aid charter schools in  
            accessing facilities.  The federal Public Charter School Grant  
            program does not provide charter schools with facility  
            support.  Also, charter schools cannot issue bonds to build  
            facilities.  






           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081 











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