Amended in Senate June 26, 2014

Amended in Assembly May 23, 2014

Amended in Assembly March 17, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1892

Introduced by Assembly Member Bocanegra

begin insert

(Coauthor: Senator Correa)

end insert

February 19, 2014

An act to amend Sections 52060 and 52066 of, and to amend, repeal, and add Sections 2574 and 42238.02 of, the Education Code, relating to pupils.

LEGISLATIVE COUNSEL’S DIGEST

AB 1892, as amended, Bocanegra. Pupils redesignated as fluent English proficient.

(1) Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires funding pursuant to the local control funding formula to include, in addition to a base grant, supplemental and concentration grant add-ons that are based on the percentage of certain categories of pupils, known as unduplicated pupils, served by the county superintendent of schools, school district, or charter school. Existing law includes among unduplicated pupils, a pupil who is classified as an English learner, eligible for a free or reduced-price meal, or a foster youth, as defined, and requires county superintendents of schools, school districts, and charter schools to submit and report data relating to these pupils.

This bill, until statewide pupil redesignation standards are adopted after January 1, 2015, by statute or regulation, or until July 1, 2018, whichever occurs first, would include a pupil who is redesignated as fluent English proficient, as specified, as an unduplicated pupil. The bill would authorize a county superintendent of schools, school district, or charter school to receive a specified percentage of the supplemental and concentration grant add-ons for pupils redesignated as fluent English proficient for the 2 consecutive fiscal years following redesignation, as specified. By requiring county superintendents of schools, school districts, and charter schools to also submit and report data related to pupils redesignated as fluent English proficient, the bill would impose a state-mandated local program.

(2) Existing law, on or before July 1, 2014, requires the governing board of each school district and each county board of education to adopt a local control and accountability plan and requires the governing board of each school district and each county board of education to update its local control and accountability plan before July 1 of each year. Existing law requires a local control and accountability plan to include, among other things, a description of the annual goals to be achieved for each state priority, as specified, for all pupils and certain subgroups of pupils. Existing law requires a charter school petition to contain, among other things, a reasonably comprehensive description of annual goals to be achieved in each applicable state priority, as specified, for all pupils and certain subgroups of pupils, and specific annual actions to achieve those goals. Existing law requires a charter school to annually update the goals and annual actions to achieve those goals, as specified. Existing law provides that, among other things, implementation of the academic content and performance standards adopted by the State Board of Education is a state priority.

This bill would add, within that state priority, identification of any specialized programs or services provided to pupils redesignated as fluent English proficient in order for them to maintain proficiency in English and access the common core academic content standards, adopted as specified, and a broad course of study that includes certain subject areas. begin insert The bill would specify that a local control and accountability plan also include a description of the annual goals to be achieved for each state priority for pupils redesignated as fluent English proficient. end insert By requiring the governing board of each school district and each county board of education to include additional information in the local control and accountability plan, and requiring each charter school to include additional information in its annual goals, the bill would impose a state-mandated local program.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

begin delete

SECTION 1.  

Section 2574 of the Education Code is amended
to read:

2574.  

For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate a county
local control funding formula for each county superintendent of
schools as follows:

(a) Compute a county office of education operations grant equal
to the sum of each of the following amounts:

(1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).

(2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which
the county superintendent of schools has jurisdiction pursuant to
Section 1253.

(3) (A) Seventy dollars ($70) multiplied by the number of units
of countywide average daily attendance, up to a maximum of
30,000 units.

(B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a
maximum of 60,000 units.

(C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum
of 140,000 units.

(D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.

(E) For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school districts
for which the county superintendent of schools has jurisdiction
pursuant to Section 1253, charter schools authorized by school
districts for which the county superintendent of schools has
jurisdiction, and charter schools authorized by the county
superintendent of schools.

(4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the rates provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States,
as published by the United States Department of Commerce for
the 12-month period ending in the third quarter of the prior fiscal
year. This percentage change shall be determined using the latest
data available as of May 10 of the preceding fiscal year compared
with the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(b) Determine the enrollment percentage of unduplicated pupils
pursuant to the following:

(1) (A) For the 2013-14 fiscal year, divide the enrollment of
unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 fiscal year by the total
enrollment in those schools in the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of the enrollment
of unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 and 2014-15 fiscal years
by the sum of the total enrollment in those schools in the 2013-14
and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of the enrollment of unduplicated pupils in all
schools operated by a county superintendent of schools in the
current fiscal year and the two prior fiscal years by the sum of the
total enrollment in those schools in the current fiscal year and the
two prior fiscal years.

(D) For purposes of determining the enrollment percentage of
unduplicated pupils pursuant to this subdivision, enrollment in
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2 and the enrollment of pupils other than the pupils identified in
clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4)
of subdivision (c), shall be excluded from the calculation of the
enrollment percentage of unduplicated pupils.

(2) For purposes of this section, an “unduplicated pupil” is a
pupil who is classified as an English learner, eligible for a free or
reduced-price meal, a foster youth, or redesignated as fluent English
proficient pursuant to Section 313. For purposes of this section,
the definitions in Section 42238.01 of an English learner, a pupil
eligible for a free or reduced-price meal, and foster youth shall
apply. A pupil shall be counted only once for purposes of this
section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

(E) The pupil is redesignated as fluent English proficient
pursuant to Section 313 and meets the requirements of
subparagraph (B) of paragraph (2) of, and subparagraph (C) of
paragraph (3) of, subdivision (c), and is eligible for a free or
reduced-price meal, or is a foster youth, or both.

(3) (A) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, foster youth, and pupils
redesignated as fluent English proficient in schools operated by
the county superintendent of schools to the Superintendent using
the California Longitudinal Pupil Achievement Data System.

(B) The Superintendent shall make the calculations pursuant to
this section using the data submitted through the California
Longitudinal Pupil Achievement Data System.

(C) The Controller shall include instructions, as appropriate, in
the audit guide required by subdivision (a) of Section 14502.1, for
determining if the data reported by a county superintendent of
schools using the California Longitudinal Pupil Achievement Data
System is consistent with pupil data records maintained by the
county office of education.

(c) Compute an alternative education grant equal to the sum of
the following:

(1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court
school base revenue limit calculated pursuant to Article 3
(commencing with Section 2550) of Chapter 12, as that article
read on January 1, 2013.

(B) Commencing with the 2013-14 fiscal year, the per pupil
base grant shall be adjusted by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States,
as published by the United States Department of Commerce for
the 12-month period ending in the third quarter of the prior fiscal
year. This percentage change shall be determined using the latest
data available as of May 10 of the preceding fiscal year compared
with the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(2) (A) A supplemental grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the enrollment
percentage calculated in subdivision (b). The supplemental grant
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(B) (i) A county superintendent of schools shall receive 50
percent of the supplemental grant calculated pursuant to
subparagraph (A) for a pupil redesignated as fluent English
proficient pursuant to Section 313 for the first fiscal year after the
pupil has been redesignated as fluent English proficient.

(ii) A county superintendent of schools shall receive 25 percent
of the supplemental grant calculated pursuant to subparagraph (A)
for a pupil redesignated as fluent English proficient pursuant to
Section 313 for the second fiscal year after the pupil has been
redesignated as fluent English proficient.

(3) (A) A concentration grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the greater of either
of the following:

(i) The enrollment percentage calculated in subdivision (b) less
50 percent.

(ii) Zero.

(B) The concentration grant shall be expended in accordance
with the regulations adopted pursuant to Section 42238.07.

(C) (i) A county superintendent of schools shall receive 50
percent of the concentration grant calculated pursuant to
subparagraph (A) for a pupil redesignated as fluent English
proficient pursuant to Section 313 for the first fiscal year after the
pupil has been redesignated as fluent English proficient.

(ii) A county superintendent of schools shall receive 25 percent
of the concentration grant calculated pursuant to subparagraph (A)
for a pupil redesignated as fluent English proficient pursuant to
Section 313 for the second fiscal year after the pupil has been
redesignated as fluent English proficient.

(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county superintendent of schools,
excluding units of average daily attendance for pupils attending
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2, who are enrolled pursuant to any of the following:

(i) Probation-referred pursuant to Sections 300, 601, 602, and
654 of the Welfare and Institutions Code.

(ii) On probation or parole and not in attendance in a school.

(iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.

(B) Multiply the number of units of average daily attendance
for pupils attending schools or classes established pursuant to
Article 2.5 (commencing with Section 48645) of Chapter 4 of Part
27 of Division 4 of Title 2 by the sum of the base grant calculated
pursuant to paragraph (1), a supplemental grant equal to 35 percent
of the base grant calculated pursuant to paragraph (1), and a
concentration grant equal to 17.5 percent of the base grant
calculated pursuant to paragraph (1). Funds provided for the
supplemental and concentration grants pursuant to this calculation
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(C) Add the amounts calculated in subparagraphs (A) and (B).

(d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).

(e) Add all of the following to the amount calculated in
subdivision (d):

(1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
on January 1, 2013.

(2) (A) The amount of funding a county superintendent of
schools received for the 2012-13 fiscal year from funds allocated
pursuant to the Home-to-School Transportation program, as set
forth in Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5 of Division 3 of Title 2, Article 10 (commencing with
Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2,
and the Small School District Transportation program, as set forth
in Article 4.5 (commencing with Section 42290) of Chapter 7 of
Part 24 of Division 3 of Title 2, as those articles read on January
1, 2013.

(B) On or before March 1, 2014, the Legislative Analyst’s Office
shall submit recommendations to the fiscal committees of both
houses of the Legislature regarding revisions to the methods of
funding pupil transportation that address historical funding
inequities across county offices of education and school districts
and improve incentives for local educational agencies to provide
efficient and effective pupil transportation services.

(f) This section shall become inoperative upon the adoption of
statewide pupil redesignation standards after January 1, 2015, by
statute or regulation, or on July 1, 2018, whichever occurs first,
and, as of January 1, 2019, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2019,
deletes or extends the conditions on which it becomes inoperative
and is repealed.

SEC. 2.  

Section 2574 is added to the Education Code, to read:

2574.  

For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate a county
local control funding formula for each county superintendent of
schools as follows:

(a) Compute a county office of education operations grant equal
to the sum of each of the following amounts:

(1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).

(2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which
the county superintendent of schools has jurisdiction pursuant to
Section 1253.

(3) (A) Seventy dollars ($70) multiplied by the number of units
of countywide average daily attendance, up to a maximum of
30,000 units.

(B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a
maximum of 60,000 units.

(C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum
of 140,000 units.

(D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.

(E) For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school districts
for which the county superintendent of schools has jurisdiction
pursuant to Section 1253, charter schools authorized by school
districts for which the county superintendent of schools has
jurisdiction, and charter schools authorized by the county
superintendent of schools.

(4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the rates provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States,
as published by the United States Department of Commerce for
the 12-month period ending in the third quarter of the prior fiscal
year. This percentage change shall be determined using the latest
data available as of May 10 of the preceding fiscal year compared
with the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(b) Determine the enrollment percentage of unduplicated pupils
pursuant to the following:

(1) (A) For the 2013-14 fiscal year, divide the enrollment of
unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 fiscal year by the total
enrollment in those schools in the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of the enrollment
of unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 and 2014-15 fiscal years
by the sum of the total enrollment in those schools in the 2013-14
and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of the enrollment of unduplicated pupils in all
schools operated by a county superintendent of schools in the
current fiscal year and the two prior fiscal years by the sum of the
total enrollment in those schools in the current fiscal year and the
two prior fiscal years.

(D) For purposes of determining the enrollment percentage of
unduplicated pupils pursuant to this subdivision, enrollment in
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2 and the enrollment of pupils other than the pupils identified in
clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4)
of subdivision (c), shall be excluded from the calculation of the
enrollment percentage of unduplicated pupils.

(2) For purposes of this section, an “unduplicated pupil” is a
pupil who is classified as an English learner, eligible for a free or
reduced-price meal, or a foster youth. For purposes of this section,
the definitions in Section 42238.01 of an English learner, a pupil
eligible for a free or reduced-price meal, and foster youth shall
apply. A pupil shall be counted only once for purposes of this
section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

(3) (A) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, and foster youth in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil
Achievement Data System.

(B) The Superintendent shall make the calculations pursuant to
this section using the data submitted through the California
Longitudinal Pupil Achievement Data System.

(C) The Controller shall include instructions, as appropriate, in
the audit guide required by subdivision (a) of Section 14502.1, for
determining if the data reported by a county superintendent of
schools using the California Longitudinal Pupil Achievement Data
System is consistent with pupil data records maintained by the
county office of education.

(c) Compute an alternative education grant equal to the sum of
the following:

(1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court
school base revenue limit calculated pursuant to Article 3
(commencing with Section 2550) of Chapter 12, as that article
read on January 1, 2013.

(B) Commencing with the 2013-14 fiscal year, the per pupil
base grant shall be adjusted by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States,
as published by the United States Department of Commerce for
the 12-month period ending in the third quarter of the prior fiscal
year. This percentage change shall be determined using the latest
data available as of May 10 of the preceding fiscal year compared
with the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(2) (A) A supplemental grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the enrollment
percentage calculated in subdivision (b). The supplemental grant
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(B) If a pupil has been redesignated as fluent English proficient
pursuant to Section 313 before this section is operative and a
county superintendent of schools has not already received, for the
first fiscal year after the pupil has been redesignated as fluent
English proficient, 50 percent of, and for the second fiscal year
after the pupil has been redesignated as fluent English proficient,
25 percent of, the supplemental grant calculated pursuant to
subparagraph (A), the county superintendent of schools shall
receive the applicable percentage of the supplemental grant
calculated pursuant to subparagraph (A) for the pupil redesignated
as fluent English proficient until he or she has received the
applicable percentage of the supplemental grant for the applicable
fiscal year.

(3) (A) A concentration grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the greater of either
of the following:

(i) The enrollment percentage calculated in subdivision (b) less
50 percent.

(ii) Zero.

(B) The concentration grant shall be expended in accordance
with the regulations adopted pursuant to Section 42238.07.

(C) If a pupil has been redesignated as fluent English proficient
pursuant to Section 313 before this section is operative and a
county superintendent of schools has not already received, for the
first fiscal year after the pupil has been redesignated as fluent
English proficient, 50 percent of, and for the second fiscal year
after the pupil has been redesignated as fluent English proficient,
25 percent of, the concentration grant calculated pursuant to
subparagraph (A), the county superintendent of schools shall
receive the applicable percentage of the concentration grant
calculated pursuant to subparagraph (A) for the pupil redesignated
as fluent English proficient until he or she has received the
applicable percentage of the concentration grant for the applicable
fiscal year.

(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county superintendent of schools,
excluding units of average daily attendance for pupils attending
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2, who are enrolled pursuant to any of the following:

(i) Probation-referred pursuant to Sections 300, 601, 602, and
654 of the Welfare and Institutions Code.

(ii) On probation or parole and not in attendance in a school.

(iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.

(B) Multiply the number of units of average daily attendance
for pupils attending schools or classes established pursuant to
Article 2.5 (commencing with Section 48645) of Chapter 4 of Part
27 of Division 4 of Title 2 by the sum of the base grant calculated
pursuant to paragraph (1), a supplemental grant equal to 35 percent
of the base grant calculated pursuant to paragraph (1), and a
concentration grant equal to 17.5 percent of the base grant
calculated pursuant to paragraph (1). Funds provided for the
supplemental and concentration grants pursuant to this calculation
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(C) Add the amounts calculated in subparagraphs (A) and (B).

(d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).

(e) Add all of the following to the amount calculated in
subdivision (d):

(1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
on January 1, 2013.

(2) (A) The amount of funding a county superintendent of
schools received for the 2012-13 fiscal year from funds allocated
pursuant to the Home-to-School Transportation program, as set
forth in Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5 of Division 3 of Title 2, Article 10 (commencing with
Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2,
and the Small School District Transportation program, as set forth
in Article 4.5 (commencing with Section 42290) of Chapter 7 of
Part 24 of Division 3 of Title 2, as those articles read on January
1, 2013.

(B) On or before March 1, 2014, the Legislative Analyst’s Office
shall submit recommendations to the fiscal committees of both
houses of the Legislature regarding revisions to the methods of
funding pupil transportation that address historical funding
inequities across county offices of education and school districts
and improve incentives for local educational agencies to provide
efficient and effective pupil transportation services.

(f) This section shall become operative upon the adoption of
statewide pupil redesignation standards after January 1, 2015, by
statute or regulation, or on July 1, 2018, whichever occurs first.

SEC. 3.  

Section 42238.02 of the Education Code is amended
to read:

42238.02.  

(a) The amount computed pursuant to this section
shall be known as the school district and charter school local
control funding formula.

(b) (1) For purposes of this section “unduplicated pupil” means
a pupil enrolled in a school district or a charter school who is
classified as an English learner, eligible for a free or reduced-price
meal, a foster youth, or redesignated as fluent English proficient
pursuant to Section 313. A pupil shall be counted only once for
purposes of this section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

(E) The pupil is redesignated as fluent English proficient
pursuant to Section 313 and meets the requirements of paragraph
(2) of subdivision (e) and paragraph (3) of subdivision (f), and is
eligible for a free or reduced-price meal, or is a foster youth, or
both.

(2) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a school
district or charter school shall annually submit its enrolled free
and reduced-price meal eligibility, foster youth, English learner,
and redesignated as fluent English proficient pupil-level records
for enrolled pupils to the Superintendent using the California
Longitudinal Pupil Achievement Data System.

(3) (A) Commencing with the 2013-14 fiscal year, a county
office of education shall review and validate certified aggregate
English learner, foster youth, free or reduced-price meal eligible,
and redesignated as fluent English proficient pupil data for school
districts and charter schools under its jurisdiction to ensure the
data is reported accurately. The Superintendent shall provide each
county office of education with appropriate access to school district
and charter school data reports in the California Longitudinal Pupil
Achievement Data System for purposes of ensuring data reporting
accuracy.

(B) The Controller shall include the instructions necessary to
enforce paragraph (2) in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the English learner, foster
youth, free or reduced-price meal eligible, and redesignated as
fluent English proficient pupil counts are consistent with the school
district’s or charter school’s English learner, foster youth, free or
reduced-price meal eligible, and redesignated as fluent English
proficient pupil records.

(4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal
Pupil Achievement Data System. Under timeframes and procedures
established by the Superintendent, school districts and charter
schools may review and revise their submitted data on English
learner, foster youth, free or reduced-price meal eligible, and
redesignated as fluent English proficient pupil counts to ensure
the accuracy of data reflected in the California Longitudinal Pupil
Achievement Data System.

(5) The Superintendent shall annually compute the percentage
of unduplicated pupils for each school district and charter school
by dividing the enrollment of unduplicated pupils in a school
district or charter school by the total enrollment in that school
district or charter school pursuant to all of the following:

(A) For the 2013-14 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 fiscal year by the sum of the total pupil
enrollment for the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
total pupil enrollment for the 2013-14 and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of unduplicated pupils for the current fiscal year
and the two prior fiscal years by the sum of the total pupil
enrollment for the current fiscal year and the two prior fiscal years.

(c) Commencing with the 2013-14 fiscal year and each fiscal
year thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.

(d) The Superintendent shall compute a grade span adjusted
base grant equal to the total of the following amounts:

(1) For the 2013-14 fiscal year, a base grant of:

(A) Six thousand eight hundred forty-five dollars ($6,845) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.

(B) Six thousand nine hundred forty-seven dollars ($6,947) for
average daily attendance in grades 4 to 6, inclusive.

(C) Seven thousand one hundred fifty-four dollars ($7,154) for
average daily attendance in grades 7 and 8.

(D) Eight thousand two hundred eighty-nine dollars ($8,289)
for average daily attendance in grades 9 to 12, inclusive.

(2) In each year the grade span adjusted base grants in paragraph
(1) shall be adjusted by the percentage change in the annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month
period ending in the third quarter of the prior fiscal year. This
percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with
the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(3) (A) The Superintendent shall compute an additional
adjustment to the kindergarten and grades 1 to 3, inclusive, base
grant as adjusted for inflation pursuant to paragraph (2) equal to
10.4 percent. The additional grant shall be calculated by
multiplying the kindergarten and grades 1 to 3, inclusive, base
grant, as adjusted by paragraph (2), by 10.4 percent.

(B) Until paragraph (4) of subdivision (b) of Section 42238.03
is effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an average
class enrollment of not more than 24 pupils for each schoolsite in
kindergarten and grades 1 to 3, inclusive, unless a collectively
bargained alternative annual average class enrollment for each
schoolsite in those grades is agreed to by the school district,
pursuant to the following calculation:

(i) Determine a school district’s average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, in
the prior year. For the 2013-14 fiscal year, this amount shall be
the average class enrollment for each schoolsite for kindergarten
and grades 1 to 3, inclusive, in the 2012-13 fiscal year.

(ii) Determine a school district’s proportion of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

(iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.

(iv) Determine the difference between the amount computed
pursuant to clause (i) and an average class enrollment of not more
than 24 pupils.

(v) Calculate a current year average class enrollment adjustment
for each schoolsite for kindergarten and grades 1 to 3, inclusive,
equal to the adjustment calculated in clause (iv) multiplied by the
percentage determined pursuant to clause (iii).

(C) School districts that have an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
24 pupils or less for each schoolsite in the 2012-13 fiscal year,
shall be exempt from the requirements of subparagraph (B) so long
as the school district continues to maintain an average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, of not more than 24 pupils, unless a collectively
bargained alternative ratio is agreed to by the school district.

(D) Upon full implementation of the local control funding
formula, as a condition of the receipt of funds in this paragraph,
all school districts shall maintain an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
not more than 24 pupils for each schoolsite in kindergarten and
grades 1 to 3, inclusive, unless a collectively bargained alternative
ratio is agreed to by the school district.

(E) The average class enrollment requirement for each schoolsite
for kindergarten and grades 1 to 3, inclusive, established pursuant
to this paragraph shall not be subject to waiver by the state board
pursuant to Section 33050 or by the Superintendent.

(F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, exceeds 24 pupils, or an alternative average class
enrollment for each schoolsite pursuant to a collectively bargained
alternative ratio. The procedures for determining average class
enrollment for each schoolsite shall include criteria for employing
sampling.

(4) The Superintendent shall compute an additional adjustment
to the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.6 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6
percent.

(e) (1) The Superintendent shall compute a supplemental grant
add-on equal to 20 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b). The supplemental grant shall be calculated by
multiplying the base grants as specified in subparagraphs (A) to
(D), inclusive, of paragraph (1), as adjusted by paragraphs (2) to
(4), inclusive, of subdivision (d), by 20 percent and by the
percentage of unduplicated pupils calculated pursuant to paragraph
(5) of subdivision (b) in that school district or charter school. The
supplemental grant shall be expended in accordance with the
regulations adopted pursuant to Section 42238.07.

(2) (A) A school district or charter school shall receive 50
percent of the supplemental grant add-on calculated pursuant to
paragraph (1) for a pupil redesignated as fluent English proficient
pursuant to Section 313 for the first fiscal year after the pupil has
been redesignated as fluent English proficient.

(B) A school district or charter school shall receive 25 percent
of the supplemental grant add-on calculated pursuant to paragraph
(1) for a pupil redesignated as fluent English proficient pursuant
to Section 313 for the second fiscal year after the pupil has been
redesignated as fluent English proficient.

(f) (1) The Superintendent shall compute a concentration grant
add-on equal to 50 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district’s or
charter school’s total enrollment. The concentration grant shall be
calculated by multiplying the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), by 50 percent and by the percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the total enrollment in that school district or charter
school.

(2) For a charter school physically located in only one school
district, the percentage of unduplicated pupils calculated pursuant
to paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district in
which the charter school is physically located. For a charter school
physically located in more than one school district, the charter
school’s percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed that of the school
district with the highest percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the school districts in which the charter school
has a school facility. The concentration grant shall be expended
in accordance with the regulations adopted pursuant to Section
42238.07.

(3) (A) A school district or charter school shall receive 50
percent of the concentration grant add-on calculated pursuant to
paragraph (1) for a pupil redesignated as fluent English proficient
pursuant to Section 313 for the first fiscal year after the pupil has
been redesignated as fluent English proficient.

(B) A school district or charter school shall receive 25 percent
of the concentration grant add-on calculated pursuant to paragraph
(1) for a pupil redesignated as fluent English proficient pursuant
to Section 313 for the second fiscal year after the pupil has been
redesignated as fluent English proficient.

(g) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2, for the 2012-13 fiscal year, as that article read on
January 1, 2013. A school district or charter school shall not receive
a total funding amount from this add-on greater than the total
amount of funding received by the school district or charter school
from that program in the 2012-13 fiscal year. The amount
computed pursuant to this subdivision shall reflect the reduction
specified in paragraph (2) of subdivision (a) of Section 42238.03.

(h) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Home-to-School Transportation program, as set forth in
former Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5, former Article 10 (commencing with Section 41850)
of Chapter 5, and the Small School District Transportation
program, as set forth in former Article 4.5 (commencing with
Section 42290), for the 2012-13 fiscal year. A school district or
charter school shall not receive a total funding amount from this
add-on greater than the total amount received by the school district
or charter school for those programs in the 2012-13 fiscal year.
The amount computed pursuant to this subdivision shall reflect
the reduction specified in paragraph (2) of subdivision (a) of
Section 42238.03.

(i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:

(A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily
attendance computed pursuant to paragraph (2) of subdivision (a)
of Section 42238.05 for purposes of the computation specified in
subdivision (d).

(B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.

(2) The amount computed pursuant to Article 4 (commencing
with Section 42280) shall be added to the amount computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (d), as
multiplied by subparagraph (A) or (B) of paragraph (1), as
appropriate.

(j) The Superintendent shall adjust the sum of each school
district’s or charter school’s amount determined in subdivisions
(g) to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:

(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code.

(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.

(2) The amount, if any, received pursuant to Part 18.5
(commencing with Section 38101) of Division 2 of the Revenue
and Taxation Code.

(3) The amount, if any, received pursuant to Chapter 3
(commencing with Section 16140) of Part 1 of Division 4 of Title
2 of the Government Code.

(4) Prior years’ taxes and taxes on the unsecured roll.

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(8) Revenue received pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the California
Constitution.

(k) A school district shall annually transfer to each of its charter
schools funding in lieu of property taxes pursuant to Section 47635.

(l) (1) Nothing in this section shall be interpreted to authorize
a school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law pursuant to paragraph
(2) or pursuant to an agreement between the charter school and its
chartering authority.

(2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13
fiscal year pursuant to paragraph (2) of subdivision (b) of Section
42606, as that section read on January 1, 2013, may annually
redirect for another purpose a percentage of the amount of the
funding received on behalf of that charter school. The percentage
of funding that may be redirected shall be determined pursuant to
the following computation:

(A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.

(ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.

(iii) Subtract the amount computed pursuant to paragraphs (1)
to (3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision (i).

(iv) Compute a percentage by dividing the sum of the amounts
computed pursuant to clauses (i) and (ii) by the amount computed
pursuant to clause (iii).

(B) Multiply the percentage computed pursuant to subparagraph
(A) by the amount of funding the school district received on behalf
of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013.

(C) The maximum amount that may be redirected shall be the
lesser of the amount of funding the school district received on
behalf of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or the amount computed pursuant to subparagraph
(B).

(3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide each
affiliated charter school schoolsite with no less than the amount
of funding the schoolsite received pursuant to the charter school
block grant in the 2012-13 fiscal year.

(m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to, this
section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation
Code, shall be made exclusive of the revenue received pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section
36 of Article XIII of the California Constitution.

(n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4.

(o) A school district that does not receive an apportionment of
state funds pursuant to this section, as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of subdivision (e) of Section 42238.03 shall be
considered a “basic aid school district” or an “excess tax entity.”

(p) This section shall become inoperative upon the adoption of
statewide pupil redesignation standards after January 1, 2015, by
statute or regulation, or on July 1, 2018, whichever occurs first,
and, as of January 1, 2019, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2019,
deletes or extends the conditions on which it becomes inoperative
and is repealed.

SEC. 4.  

Section 42238.02 is added to the Education Code, to
read:

42238.02.  

(a) The amount computed pursuant to this section
shall be known as the school district and charter school local
control funding formula.

(b) (1) For purposes of this section “unduplicated pupil” means
a pupil enrolled in a school district or a charter school who is
classified as an English learner, eligible for a free or reduced-price
meal, or is a foster youth. A pupil shall be counted only once for
purposes of this section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

(2) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a school
district or charter school shall annually submit its enrolled free
and reduced-price meal eligibility, foster youth, and English learner
pupil-level records for enrolled pupils to the Superintendent using
the California Longitudinal Pupil Achievement Data System.

(3) (A) Commencing with the 2013-14 fiscal year, a county
office of education shall review and validate certified aggregate
English learner, foster youth, and free or reduced-price meal
eligible pupil data for school districts and charter schools under
its jurisdiction to ensure the data is reported accurately. The
Superintendent shall provide each county office of education with
appropriate access to school district and charter school data reports
in the California Longitudinal Pupil Achievement Data System
for purposes of ensuring data reporting accuracy.

(B) The Controller shall include the instructions necessary to
enforce paragraph (2) in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the English learner, foster
youth, and free or reduced-price meal eligible pupil counts are
consistent with the school district’s or charter school’s English
learner, foster youth, and free or reduced-price meal eligible pupil
records.

(4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal
Pupil Achievement Data System. Under timeframes and procedures
established by the Superintendent, school districts and charter
schools may review and revise their submitted data on English
learner, foster youth, and free or reduced-price meal eligible pupil
counts to ensure the accuracy of data reflected in the California
Longitudinal Pupil Achievement Data System.

(5) The Superintendent shall annually compute the percentage
of unduplicated pupils for each school district and charter school
by dividing the enrollment of unduplicated pupils in a school
district or charter school by the total enrollment in that school
district or charter school pursuant to all of the following:

(A) For the 2013-14 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 fiscal year by the sum of the total pupil
enrollment for the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
total pupil enrollment for the 2013-14 and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of unduplicated pupils for the current fiscal year
and the two prior fiscal years by the sum of the total pupil
enrollment for the current fiscal year and the two prior fiscal years.

(c) Commencing with the 2013-14 fiscal year and each fiscal
year thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.

(d) The Superintendent shall compute a grade span adjusted
base grant equal to the total of the following amounts:

(1) For the 2013-14 fiscal year, a base grant of:

(A) Six thousand eight hundred forty-five dollars ($6,845) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.

(B) Six thousand nine hundred forty-seven dollars ($6,947) for
average daily attendance in grades 4 to 6, inclusive.

(C) Seven thousand one hundred fifty-four dollars ($7,154) for
average daily attendance in grades 7 and 8.

(D) Eight thousand two hundred eighty-nine dollars ($8,289)
for average daily attendance in grades 9 to 12, inclusive.

(2) In each year the grade span adjusted base grants in paragraph
(1) shall be adjusted by the percentage change in the annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month
period ending in the third quarter of the prior fiscal year. This
percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with
the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(3) (A) The Superintendent shall compute an additional
adjustment to the kindergarten and grades 1 to 3, inclusive, base
grant as adjusted for inflation pursuant to paragraph (2) equal to
10.4 percent. The additional grant shall be calculated by
multiplying the kindergarten and grades 1 to 3, inclusive, base
grant, as adjusted by paragraph (2), by 10.4 percent.

(B) Until paragraph (4) of subdivision (b) of Section 42238.03
is effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an average
class enrollment of not more than 24 pupils for each schoolsite in
kindergarten and grades 1 to 3, inclusive, unless a collectively
bargained alternative annual average class enrollment for each
schoolsite in those grades is agreed to by the school district,
pursuant to the following calculation:

(i) Determine a school district’s average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, in
the prior year. For the 2013-14 fiscal year, this amount shall be
the average class enrollment for each schoolsite for kindergarten
and grades 1 to 3, inclusive, in the 2012-13 fiscal year.

(ii) Determine a school district’s proportion of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

(iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.

(iv) Determine the difference between the amount computed
pursuant to clause (i) and an average class enrollment of not more
than 24 pupils.

(v) Calculate a current year average class enrollment adjustment
for each schoolsite for kindergarten and grades 1 to 3, inclusive,
equal to the adjustment calculated in clause (iv) multiplied by the
percentage determined pursuant to clause (iii).

(C) School districts that have an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
24 pupils or less for each schoolsite in the 2012-13 fiscal year,
shall be exempt from the requirements of subparagraph (B) so long
as the school district continues to maintain an average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, of not more than 24 pupils, unless a collectively
bargained alternative ratio is agreed to by the school district.

(D) Upon full implementation of the local control funding
formula, as a condition of the receipt of funds in this paragraph,
all school districts shall maintain an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
not more than 24 pupils for each schoolsite in kindergarten and
grades 1 to 3, inclusive, unless a collectively bargained alternative
ratio is agreed to by the school district.

(E) The average class enrollment requirement for each schoolsite
for kindergarten and grades 1 to 3, inclusive, established pursuant
to this paragraph shall not be subject to waiver by the state board
pursuant to Section 33050 or by the Superintendent.

(F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, exceeds 24 pupils, or an alternative average class
enrollment for each schoolsite pursuant to a collectively bargained
alternative ratio. The procedures for determining average class
enrollment for each schoolsite shall include criteria for employing
sampling.

(4) The Superintendent shall compute an additional adjustment
to the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.6 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6
percent.

(e) (1) The Superintendent shall compute a supplemental grant
add-on equal to 20 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b). The supplemental grant shall be calculated by
multiplying the base grants as specified in subparagraphs (A) to
(D), inclusive, of paragraph (1), as adjusted by paragraphs (2) to
(4), inclusive, of subdivision (d), by 20 percent and by the
percentage of unduplicated pupils calculated pursuant to paragraph
(5) of subdivision (b) in that school district or charter school. The
supplemental grant shall be expended in accordance with the
regulations adopted pursuant to Section 42238.07.

(2) If a pupil has been redesignated as fluent English proficient
pursuant to Section 313 before this section is operative and a school
district or charter school has not already received, for the first
fiscal year after the pupil has been redesignated as fluent English
proficient, 50 percent of, and for the second fiscal year after the
pupil has been redesignated as fluent English proficient, 25 percent
of, the supplemental grant calculated pursuant to paragraph (1),
the school district or charter school shall receive the applicable
percentage of the supplemental grant calculated pursuant to
paragraph (1) for the pupil redesignated as fluent English proficient
until it has received the applicable percentage of the supplemental
grant for the applicable fiscal year.

(f) (1) The Superintendent shall compute a concentration grant
add-on equal to 50 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district’s or
charter school’s total enrollment. The concentration grant shall be
calculated by multiplying the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), by 50 percent and by the percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the total enrollment in that school district or charter
school.

(2) For a charter school physically located in only one school
district, the percentage of unduplicated pupils calculated pursuant
to paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district in
which the charter school is physically located. For a charter school
physically located in more than one school district, the charter
school’s percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed that of the school
district with the highest percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the school districts in which the charter school
has a school facility. The concentration grant shall be expended
in accordance with the regulations adopted pursuant to Section
42238.07.

(3) If a pupil has been redesignated as fluent English proficient
pursuant to Section 313 before this section is operative and a school
district or charter school has not already received, for the first
fiscal year after the pupil has been redesignated as fluent English
proficient, 50 percent of, and for the second fiscal year after the
pupil has been redesignated as fluent English proficient, 25 percent
of, the concentration grant calculated pursuant to paragraph (1),
the school district or charter school shall receive the applicable
percentage of the concentration grant calculated pursuant to
paragraph (1) for the pupil redesignated as fluent English proficient
until it has received the applicable percentage of the concentration
grant for the applicable fiscal year.

(g) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2, for the 2012-13 fiscal year, as that article read on
January 1, 2013. A school district or charter school shall not receive
a total funding amount from this add-on greater than the total
amount of funding received by the school district or charter school
from that program in the 2012-13 fiscal year. The amount
computed pursuant to this subdivision shall reflect the reduction
specified in paragraph (2) of subdivision (a) of Section 42238.03.

(h) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Home-to-School Transportation program, as set forth in
former Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5, former Article 10 (commencing with Section 41850)
of Chapter 5, and the Small School District Transportation
program, as set forth in former Article 4.5 (commencing with
Section 42290), for the 2012-13 fiscal year. A school district or
charter school shall not receive a total funding amount from this
add-on greater than the total amount received by the school district
or charter school for those programs in the 2012-13 fiscal year.
The amount computed pursuant to this subdivision shall reflect
the reduction specified in paragraph (2) of subdivision (a) of
Section 42238.03.

(i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:

(A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily
attendance computed pursuant to paragraph (2) of subdivision (a)
of Section 42238.05 for purposes of the computation specified in
subdivision (d).

(B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.

(2) The amount computed pursuant to Article 4 (commencing
with Section 42280) shall be added to the amount computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (d), as
multiplied by subparagraph (A) or (B) of paragraph (1), as
appropriate.

(j) The Superintendent shall adjust the sum of each school
district’s or charter school’s amount determined in subdivisions
(g) to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:

(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code.

(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.

(2) The amount, if any, received pursuant to Part 18.5
(commencing with Section 38101) of Division 2 of the Revenue
and Taxation Code.

(3) The amount, if any, received pursuant to Chapter 3
(commencing with Section 16140) of Part 1 of Division 4 of Title
2 of the Government Code.

(4) Prior years’ taxes and taxes on the unsecured roll.

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(8) Revenue received pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the California
Constitution.

(k) A school district shall annually transfer to each of its charter
schools funding in lieu of property taxes pursuant to Section 47635.

(l) (1) Nothing in this section shall be interpreted to authorize
a school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law pursuant to paragraph
(2) or pursuant to an agreement between the charter school and its
chartering authority.

(2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13
fiscal year pursuant to paragraph (2) of subdivision (b) of Section
42606, as that section read on January 1, 2013, may annually
redirect for another purpose a percentage of the amount of the
funding received on behalf of that charter school. The percentage
of funding that may be redirected shall be determined pursuant to
the following computation:

(A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.

(ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.

(iii) Subtract the amount computed pursuant to paragraphs (1)
to (3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision (i).

(iv) Compute a percentage by dividing the sum of the amounts
computed pursuant to clauses (i) and (ii) by the amount computed
pursuant to clause (iii).

(B) Multiply the percentage computed pursuant to subparagraph
(A) by the amount of funding the school district received on behalf
of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013.

(C) The maximum amount that may be redirected shall be the
lesser of the amount of funding the school district received on
behalf of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or the amount computed pursuant to subparagraph
(B).

(3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide each
affiliated charter school schoolsite with no less than the amount
of funding the schoolsite received pursuant to the charter school
block grant in the 2012-13 fiscal year.

(m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to, this
section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation
Code, shall be made exclusive of the revenue received pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section
36 of Article XIII of the California Constitution.

(n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4.

(o) A school district that does not receive an apportionment of
state funds pursuant to this section, as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of subdivision (e) of Section 42238.03 shall be
considered a “basic aid school district” or an “excess tax entity.”

(p) This section shall become operative upon the adoption of
statewide pupil redesignation standards after January 1, 2015, by
statute or regulation, or on July 1, 2018, whichever occurs first.

end delete

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 2574 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

2574.  

For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate a county
local control funding formula for each county superintendent of
schools as follows:

(a) Compute a county office of education operations grant equal
to the sum of each of the following amounts:

(1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).

(2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which
the county superintendent of schools has jurisdiction pursuant to
Section 1253.

(3) (A) Seventy dollars ($70) multiplied by the number of units
of countywide average daily attendance, up to a maximum of
30,000 units.

(B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a
maximum of 60,000 units.

(C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum
of 140,000 units.

(D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.

(E) For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school districts
for which the county superintendent of schools has jurisdiction
pursuant to Section 1253, charter schools authorized by school
districts for which the county superintendent of schools has
jurisdiction, and charter schools authorized by the county
superintendent of schools.

(4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the rates provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States,
as published by the United States Department of Commerce for
the 12-month period ending in the third quarter of the prior fiscal
year. This percentage change shall be determined using the latest
data available as of May 10 of the preceding fiscal year compared
with the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(b) Determine the enrollment percentage of unduplicated pupils
pursuant to the following:

(1) (A) For the 2013-14 fiscal year, divide the enrollment of
unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 fiscal year by the total
enrollment in those schools in the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of the enrollment
of unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 and 2014-15 fiscal years
by the sum of the total enrollment in those schools in the 2013-14
and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of the enrollment of unduplicated pupils in all
schools operated by a county superintendent of schools in the
current fiscal year and the two prior fiscal years by the sum of the
total enrollment in those schools in the current fiscal year and the
two prior fiscal years.

(D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a county
superintendent of schools’ enrollment of unduplicated pupils and
total pupil enrollment in the 2014-15 fiscal year instead of the
enrollment of unduplicated pupils and total pupil enrollment in
the 2013-14 fiscal year if doing so would yield an overall greater
percentage of unduplicated pupils.

(ii) It is the intent of the Legislature to review each county office
of education’s enrollment of unduplicated pupils for the 2013-14
and 2014-15 fiscal years and provide one-time funding, if
necessary, for a county office of education with higher enrollment
of unduplicated pupils in the 2014-15 fiscal year as compared to
the 2013-14 fiscal year.

(E) For purposes of determining the enrollment percentage of
unduplicated pupils pursuant to this subdivision, enrollment in
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2 and the enrollment of pupils other than the pupils identified in
clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4)
of subdivision (c), shall be excluded from the calculation of the
enrollment percentage of unduplicated pupils.

(F) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This subparagraph does not apply to a change that is the result of
an audit that has been appealed pursuant to Section 41344.

(2) For purposes of this section, an “unduplicated pupil” is a
pupil who is classified as an English learner, eligible for a free or
reduced-price meal, begin delete or a foster youth. end delete begin insert a foster youth, or
redesignated as fluent English proficient pursuant to Section 313. end insert
For purposes of this section, the definitions in Section 42238.01
of an English learner, a pupil eligible for a free or reduced-price
meal, and foster youth shall apply. A pupil shall be counted only
once for purposes of this section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

begin insert

(E) The pupil is redesignated as fluent English proficient
pursuant to Section 313 and meets the requirements of
subparagraph (B) of paragraph (2) of, and subparagraph (C) of
paragraph (3) of, subdivision (c), and is eligible for a free or
reduced-price meal, or is a foster youth, or both.

end insert

(3) (A) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, begin delete and foster youth end delete begin insert foster
youth, and pupils redesignated as fluent English proficient end insert in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil
Achievement Data System.

(B) The Superintendent shall make the calculations pursuant to
this section using the data submitted through the California
Longitudinal Pupil Achievement Data System.

(C) The Controller shall include instructions, as appropriate, in
the audit guide required by subdivision (a) of Section 14502.1, for
determining if the data reported by a county superintendent of
schools using the California Longitudinal Pupil Achievement Data
System is consistent with pupil data records maintained by the
county office of education.

(c) Compute an alternative education grant equal to the sum of
the following:

(1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court
school base revenue limit calculated pursuant to Article 3
(commencing with Section 2550) of Chapter 12, as that article
read on January 1, 2013. For purposes of this subparagraph, the
2012-13 statewide average juvenile court school base revenue
limit shall be considered final as of the annual apportionment for
the 2012-13 fiscal year, as calculated for purposes of the
certification required on or before February 20, 2014, pursuant to
Sections 41332 and 41339.

(B) Commencing with the 2013-14 fiscal year, the per pupil
base grant shall be adjusted by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States,
as published by the United States Department of Commerce for
the 12-month period ending in the third quarter of the prior fiscal
year. This percentage change shall be determined using the latest
data available as of May 10 of the preceding fiscal year compared
with the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(2)  begin insert (A) end insert begin insert   end insert A supplemental grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the enrollment
percentage calculated in subdivision (b). The supplemental grant
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

begin insert

(B) (i) A county superintendent of schools shall receive 50
percent of the supplemental grant calculated pursuant to
subparagraph (A) for a pupil redesignated as fluent English
proficient pursuant to Section 313 for the first fiscal year after the
pupil has been redesignated as fluent English proficient.

end insert begin insert

(ii) A county superintendent of schools shall receive 25 percent
of the supplemental grant calculated pursuant to subparagraph
(A) for a pupil redesignated as fluent English proficient pursuant
to Section 313 for the second fiscal year after the pupil has been
redesignated as fluent English proficient.

end insert

(3) (A) A concentration grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the greater of either
of the following:

(i) The enrollment percentage calculated in subdivision (b) less
50 percent.

(ii) Zero.

(B) The concentration grant shall be expended in accordance
with the regulations adopted pursuant to Section 42238.07.

begin insert

(C) (i) A county superintendent of schools shall receive 50
percent of the concentration grant calculated pursuant to
subparagraph (A) for a pupil redesignated as fluent English
proficient pursuant to Section 313 for the first fiscal year after the
pupil has been redesignated as fluent English proficient.

end insert begin insert

(ii) A county superintendent of schools shall receive 25 percent
of the concentration grant calculated pursuant to subparagraph
(A) for a pupil redesignated as fluent English proficient pursuant
to Section 313 for the second fiscal year after the pupil has been
redesignated as fluent English proficient.

end insert

(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county begin delete office of education, end delete
begin insert superintendent of schools, end insert excluding units of average daily
attendance for pupils attending schools or classes established
pursuant to Article 2.5 (commencing with Section 48645) of
Chapter 4 of Part 27 of Division 4 of Title 2, who are enrolled
pursuant to any of the following:

(i) Probation-referred pursuant to Sections 300, 601, 602, and
654 of the Welfare and Institutions Code.

(ii) On probation or parole and not in attendance in a school.

(iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.

(B) Multiply the number of units of average daily attendance
for pupils attending schools or classes established pursuant to
Article 2.5 (commencing with Section 48645) of Chapter 4 of Part
27 of Division 4 of Title 2 by the sum of the base grant calculated
pursuant to paragraph (1), a supplemental grant equal to 35 percent
of the base grant calculated pursuant to paragraph (1), and a
concentration grant equal to 17.5 percent of the base grant
calculated pursuant to paragraph (1). Funds provided for the
supplemental and concentration grants pursuant to this calculation
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(C) Add the amounts calculated in subparagraphs (A) and (B).

(d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).

(e) Add all of the following to the amount calculated in
subdivision (d):

(1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
on January 1, 2013.

(2) (A) The amount of funding a county superintendent of
schools received for the 2012-13 fiscal year from funds allocated
pursuant to the Home-to-School Transportation program, as set
forth in Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5 of Division 3 of Title 2, Article 10 (commencing with
Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2,
and the Small School District Transportation program, as set forth
in Article 4.5 (commencing with Section 42290) of Chapter 7 of
Part 24 of Division 3 of Title 2, as those articles read on January
1, 2013.

(B) On or before March 1, 2014, the Legislative Analyst’s Office
shall submit recommendations to the fiscal committees of both
houses of the Legislature regarding revisions to the methods of
funding pupil transportation that address historical funding
inequities across county offices of education and school districts
and improve incentives for local educational agencies to provide
efficient and effective pupil transportation services.

(3) The difference determined by subtracting the amount
calculated pursuant to paragraph (1) of subdivision (c) for pupils
attending a school that is eligible for funding pursuant to paragraph
(2) of subdivision (b) of Section 42285 from the amount of funding
that is provided to eligible schools pursuant to Section 42284, if
the difference is positive.

begin insert

(f) This section shall become inoperative upon the adoption of
statewide pupil redesignation standards after January 1, 2015, by
statute or regulation, or on July 1, 2018, whichever occurs first,
and, as of January 1, 2019, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2019,
deletes or extends the conditions on which it becomes inoperative
and is repealed.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 2574 is added to the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

begin insert 2574. end insert   

For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate a county
local control funding formula for each county superintendent of
schools as follows:

(a) Compute a county office of education operations grant equal
to the sum of each of the following amounts:

(1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).

(2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which
the county superintendent of schools has jurisdiction pursuant to
Section 1253.

(3) (A) Seventy dollars ($70) multiplied by the number of units
of countywide average daily attendance, up to a maximum of
30,000 units.

(B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a
maximum of 60,000 units.

(C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum
of 140,000 units.

(D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.

(E) For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school
districts for which the county superintendent of schools has
jurisdiction pursuant to Section 1253, charter schools authorized
by school districts for which the county superintendent of schools
has jurisdiction, and charter schools authorized by the county
superintendent of schools.

(4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the rates provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United
States, as published by the United States Department of Commerce
for the 12-month period ending in the third quarter of the prior
fiscal year. This percentage change shall be determined using the
latest data available as of May 10 of the preceding fiscal year
compared with the annual average value of the same deflator for
the 12-month period ending in the third quarter of the second
preceding fiscal year, using the latest data available as of May 10
of the preceding fiscal year, as reported by the Department of
Finance.

(b) Determine the enrollment percentage of unduplicated pupils
pursuant to the following:

(1) (A) For the 2013-14 fiscal year, divide the enrollment of
unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 fiscal year by the total
enrollment in those schools in the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of the enrollment
of unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 and 2014-15 fiscal years
by the sum of the total enrollment in those schools in the 2013-14
and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of the enrollment of unduplicated pupils in all
schools operated by a county superintendent of schools in the
current fiscal year and the two prior fiscal years by the sum of the
total enrollment in those schools in the current fiscal year and the
two prior fiscal years.

(D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a county
superintendent of schools’ enrollment of unduplicated pupils and
total pupil enrollment in the 2014-15 fiscal year instead of the
enrollment of unduplicated pupils and total pupil enrollment in
the 2013-14 fiscal year if doing so would yield an overall greater
percentage of unduplicated pupils.

(ii) It is the intent of the Legislature to review each county office
of education’s enrollment of unduplicated pupils for the 2013-14
and 2014-15 fiscal years and provide one-time funding, if
necessary, for a county office of education with higher enrollment
of unduplicated pupils in the 2014-15 fiscal year as compared to
the 2013-14 fiscal year.

(E) For purposes of determining the enrollment percentage of
unduplicated pupils pursuant to this subdivision, enrollment in
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2 and the enrollment of pupils other than the pupils identified in
clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph
(4) of subdivision (c), shall be excluded from the calculation of
the enrollment percentage of unduplicated pupils.

(F) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This subparagraph does not apply to a change that is the result
of an audit that has been appealed pursuant to Section 41344.

(2) For purposes of this section, an “unduplicated pupil” is a
pupil who is classified as an English learner, eligible for a free or
reduced-price meal, or a foster youth. For purposes of this section,
the definitions in Section 42238.01 of an English learner, a pupil
eligible for a free or reduced-price meal, and foster youth shall
apply. A pupil shall be counted only once for purposes of this
section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and
is classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

(3) (A) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, and foster youth in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil
Achievement Data System.

(B) The Superintendent shall make the calculations pursuant
to this section using the data submitted through the California
Longitudinal Pupil Achievement Data System.

(C) The Controller shall include instructions, as appropriate,
in the audit guide required by subdivision (a) of Section 14502.1,
for determining if the data reported by a county superintendent of
schools using the California Longitudinal Pupil Achievement Data
System is consistent with pupil data records maintained by the
county office of education.

(c) Compute an alternative education grant equal to the sum of
the following:

(1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court
school base revenue limit calculated pursuant to Article 3
(commencing with Section 2550) of Chapter 12, as that article
read on January 1, 2013. For purposes of this subparagraph, the
2012-13 statewide average juvenile court school base revenue
limit shall be considered final as of the annual apportionment for
the 2012-13 fiscal year, as calculated for purposes of the
certification required on or before February 20, 2014, pursuant
to Sections 41332 and 41339.

(B) Commencing with the 2013-14 fiscal year, the per pupil
base grant shall be adjusted by the percentage change in the
annual average value of the Implicit Price Deflator for State and
Local Government Purchases of Goods and Services for the United
States, as published by the United States Department of Commerce
for the 12-month period ending in the third quarter of the prior
fiscal year. This percentage change shall be determined using the
latest data available as of May 10 of the preceding fiscal year
compared with the annual average value of the same deflator for
the 12-month period ending in the third quarter of the second
preceding fiscal year, using the latest data available as of May 10
of the preceding fiscal year, as reported by the Department of
Finance.

(2) (A) A supplemental grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the enrollment
percentage calculated in subdivision (b). The supplemental grant
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(B) If a pupil has been redesignated as fluent English proficient
pursuant to Section 313 before this section is operative and a
county superintendent of schools has not already received, for the
first fiscal year after the pupil has been redesignated as fluent
English proficient, 50 percent of, and for the second fiscal year
after the pupil has been redesignated as fluent English proficient,
25 percent of, the supplemental grant calculated pursuant to
subparagraph (A), the county superintendent of schools shall
receive the applicable percentage of the supplemental grant
calculated pursuant to subparagraph (A) for the pupil redesignated
as fluent English proficient until he or she has received the
applicable percentage of the supplemental grant for the applicable
fiscal year.

(3) (A) A concentration grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the greater of either
of the following:

(i) The enrollment percentage calculated in subdivision (b) less
50 percent.

(ii) Zero.

(B) The concentration grant shall be expended in accordance
with the regulations adopted pursuant to Section 42238.07.

(C) If a pupil has been redesignated as fluent English proficient
pursuant to Section 313 before this section is operative and a
county superintendent of schools has not already received, for the
first fiscal year after the pupil has been redesignated as fluent
English proficient, 50 percent of, and for the second fiscal year
after the pupil has been redesignated as fluent English proficient,
25 percent of, the concentration grant calculated pursuant to
subparagraph (A), the county superintendent of schools shall
receive the applicable percentage of the concentration grant
calculated pursuant to subparagraph (A) for the pupil redesignated
as fluent English proficient until he or she has received the
applicable percentage of the concentration grant for the applicable
fiscal year.

(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county superintendent of schools,
excluding units of average daily attendance for pupils attending
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2, who are enrolled pursuant to any of the following:

(i) Probation-referred pursuant to Sections 300, 601, 602, and
654 of the Welfare and Institutions Code.

(ii) On probation or parole and not in attendance in a school.

(iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.

(B) Multiply the number of units of average daily attendance
for pupils attending schools or classes established pursuant to
Article 2.5 (commencing with Section 48645) of Chapter 4 of Part
27 of Division 4 of Title 2 by the sum of the base grant calculated
pursuant to paragraph (1), a supplemental grant equal to 35
percent of the base grant calculated pursuant to paragraph (1),
and a concentration grant equal to 17.5 percent of the base grant
calculated pursuant to paragraph (1). Funds provided for the
supplemental and concentration grants pursuant to this calculation
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(C) Add the amounts calculated in subparagraphs (A) and (B).

(d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision
(c).

(e) Add all of the following to the amount calculated in
subdivision (d):

(1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
on January 1, 2013.

(2) (A) The amount of funding a county superintendent of
schools received for the 2012-13 fiscal year from funds allocated
pursuant to the Home-to-School Transportation program, as set
forth in Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5 of Division 3 of Title 2, Article 10 (commencing with
Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2,
and the Small School District Transportation program, as set forth
in Article 4.5 (commencing with Section 42290) of Chapter 7 of
Part 24 of Division 3 of Title 2, as those articles read on January
1, 2013.

(B) On or before March 1, 2014, the Legislative Analyst’s Office
shall submit recommendations to the fiscal committees of both
houses of the Legislature regarding revisions to the methods of
funding pupil transportation that address historical funding
inequities across county offices of education and school districts
and improve incentives for local educational agencies to provide
efficient and effective pupil transportation services.

(3) The difference determined by subtracting the amount
calculated pursuant to paragraph (1) of subdivision (c) for pupils
attending a school that is eligible for funding pursuant to
paragraph (2) of subdivision (b) of Section 42285 from the amount
of funding that is provided to eligible schools pursuant to Section
42284, if the difference is positive.

(f) This section shall become operative upon the adoption of
statewide pupil redesignation standards after January 1, 2015, by
statute or regulation, or on July 1, 2018, whichever occurs first.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 42238.02 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.02.  

(a) The amount computed pursuant to this section
shall be known as the school district and charter school local
control funding formula.

(b) (1) For purposes of this section “unduplicated pupil” means
a pupil enrolled in a school district or a charter school who is begin delete either end delete
classified as an English learner, eligible for a free or reduced-price
meal, begin delete or is a foster youth. end delete begin insert a foster youth, or redesignated as fluent
English proficient pursuant to Section 313. end insert A pupil shall be counted
only once for purposes of this section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

begin insert

(E) The pupil is redesignated as fluent English proficient
pursuant to Section 313 and meets the requirements of paragraph
(2) of subdivision (e) and paragraph (3) of subdivision (f), and is
eligible for a free or reduced-price meal, or is a foster youth, or
both.

end insert

(2) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a school
district or charter school shall annually submit its enrolled free
and reduced-price meal eligibility, foster youth, and begin delete English learner end delete
begin insert English learner, and redesignated as fluent English proficient end insert
pupil-level records for enrolled pupils to the Superintendent using
the California Longitudinal Pupil Achievement Data System.

(3) (A) Commencing with the 2013-14 fiscal year, a county
office of education shall review and validate certified aggregate
English learner, foster youth, begin delete and end delete free or reduced-price meal
begin delete eligible end delete begin insert eligible, and redesignated as fluent English proficient end insert
pupil data for school districts and charter schools under its
jurisdiction to ensure the data is reported accurately. The
Superintendent shall provide each county office of education with
appropriate access to school district and charter school data reports
in the California Longitudinal Pupil Achievement Data System
for purposes of ensuring data reporting accuracy.

(B) The Controller shall include the instructions necessary to
enforce paragraph (2) in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the English learner, foster
youth, begin delete and end delete free or reduced-price meal begin delete eligible end delete begin insert eligible, and
redesignated as fluent English proficient end insert pupil counts are consistent
with the school district’s or charter school’s English learner, foster
youth, begin delete and end delete free or reduced-price meal begin delete eligible end delete begin insert eligible, and
redesignated as fluent English proficient end insert pupil records.

(4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal
Pupil Achievement Data System. Under timeframes and procedures
established by the Superintendent, school districts and charter
schools may review and revise their submitted data on English
learner, foster youth, begin delete and end delete free or reduced-price meal begin delete eligible end delete
begin insert eligible, and redesignated as fluent English proficient end insert pupil counts
to ensure the accuracy of data reflected in the California
Longitudinal Pupil Achievement Data System.

(5) The Superintendent shall annually compute the percentage
of unduplicated pupils for each school district and charter school
by dividing the enrollment of unduplicated pupils in a school
district or charter school by the total enrollment in that school
district or charter school pursuant to all of the following:

(A) For the 2013-14 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 fiscal year by the sum of the total pupil
enrollment for the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
total pupil enrollment for the 2013-14 and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of unduplicated pupils for the current fiscal year
and the two prior fiscal years by the sum of the total pupil
enrollment for the current fiscal year and the two prior fiscal years.

(D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a school
district’s or charter school’s enrollment of unduplicated pupils and
total pupil enrollment in the 2014-15 fiscal year instead of the
enrollment of unduplicated pupils and total pupil enrollment in
the 2013-14 fiscal year if doing so would yield an overall greater
percentage of unduplicated pupils.

(ii) It is the intent of the Legislature to review each school
district and charter school’s enrollment of unduplicated pupils for
the 2013-14 and 2014-15 fiscal years and provide one-time
funding, if necessary, for a school district or charter school with
higher enrollment of unduplicated pupils in the 2014-15 fiscal
year as compared to the 2013-14 fiscal year.

(6) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This paragraph does not apply to a change that is the result of an
audit that has been appealed pursuant to Section 41344.

(c) Commencing with the 2013-14 fiscal year and each fiscal
year thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.

(d) The Superintendent shall compute a grade span adjusted
base grant equal to the total of the following amounts:

(1) For the 2013-14 fiscal year, a base grant of:

(A) Six thousand eight hundred forty-five dollars ($6,845) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.

(B) Six thousand nine hundred forty-seven dollars ($6,947) for
average daily attendance in grades 4 to 6, inclusive.

(C) Seven thousand one hundred fifty-four dollars ($7,154) for
average daily attendance in grades 7 and 8.

(D) Eight thousand two hundred eighty-nine dollars ($8,289)
for average daily attendance in grades 9 to 12, inclusive.

(2) In each year the grade span adjusted base grants in paragraph
(1) shall be adjusted by the percentage change in the annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month
period ending in the third quarter of the prior fiscal year. This
percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with
the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(3) (A) The Superintendent shall compute an additional
adjustment to the kindergarten and grades 1 to 3, inclusive, base
grant as adjusted for inflation pursuant to paragraph (2) equal to
10.4 percent. The additional grant shall be calculated by
multiplying the kindergarten and grades 1 to 3, inclusive, base
grant, as adjusted by paragraph (2), by 10.4 percent.

(B) Until paragraph (4) of subdivision (b) of Section 42238.03
is effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an average
class enrollment of not more than 24 pupils for each schoolsite in
kindergarten and grades 1 to 3, inclusive, unless a collectively
bargained alternative annual average class enrollment for each
schoolsite in those grades is agreed to by the school district,
pursuant to the following calculation:

(i) Determine a school district’s average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, in
the prior year. For the 2013-14 fiscal year, this amount shall be
the average class enrollment for each schoolsite for kindergarten
and grades 1 to 3, inclusive, in the 2012-13 fiscal year.

(ii) Determine a school district’s proportion of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

(iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.

(iv) Determine the difference between the amount computed
pursuant to clause (i) and an average class enrollment of not more
than 24 pupils.

(v) Calculate a current year average class enrollment adjustment
for each schoolsite for kindergarten and grades 1 to 3, inclusive,
equal to the adjustment calculated in clause (iv) multiplied by the
percentage determined pursuant to clause (iii).

(C) School districts that have an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
24 pupils or less for each schoolsite in the 2012-13 fiscal year,
shall be exempt from the requirements of subparagraph (B) so long
as the school district continues to maintain an average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, of not more than 24 pupils, unless a collectively
bargained alternative ratio is agreed to by the school district.

(D) Upon full implementation of the local control funding
formula, as a condition of the receipt of funds in this paragraph,
all school districts shall maintain an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
not more than 24 pupils for each schoolsite in kindergarten and
grades 1 to 3, inclusive, unless a collectively bargained alternative
ratio is agreed to by the school district.

(E) The average class enrollment requirement for each schoolsite
for kindergarten and grades 1 to 3, inclusive, established pursuant
to this paragraph shall not be subject to waiver by the state board
pursuant to Section 33050 or by the Superintendent.

(F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, exceeds 24 pupils, or an alternative average class
enrollment for each schoolsite pursuant to a collectively bargained
alternative ratio. The procedures for determining average class
enrollment for each schoolsite shall include criteria for employing
sampling.

(4) The Superintendent shall compute an additional adjustment
to the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.6 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6
percent.

(e)  begin insert (1) end insert begin insert   end insert The Superintendent shall compute a supplemental grant
add-on equal to 20 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b). The supplemental grant shall be calculated by
multiplying the base grants as specified in subparagraphs (A) to
(D), inclusive, of paragraph (1), as adjusted by paragraphs (2) to
(4), inclusive, of subdivision (d), by 20 percent and by the
percentage of unduplicated pupils calculated pursuant to paragraph
(5) of subdivision (b) in that school district or charter school. The
supplemental grant shall be expended in accordance with the
regulations adopted pursuant to Section 42238.07.

begin insert

(2) (A) A school district or charter school shall receive 50
percent of the supplemental grant add-on calculated pursuant to
paragraph (1) for a pupil redesignated as fluent English proficient
pursuant to Section 313 for the first fiscal year after the pupil has
been redesignated as fluent English proficient.

end insert begin insert

(B) A school district or charter school shall receive 25 percent
of the supplemental grant add-on calculated pursuant to paragraph
(1) for a pupil redesignated as fluent English proficient pursuant
to Section 313 for the second fiscal year after the pupil has been
redesignated as fluent English proficient.

end insert

(f) (1) The Superintendent shall compute a concentration grant
add-on equal to 50 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district’s or
charter school’s total enrollment. The concentration grant shall be
calculated by multiplying the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), by 50 percent and by the percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the total enrollment in that school district or charter
school.

(2) (A) For a charter school physically located in only one
school district, the percentage of unduplicated pupils calculated
pursuant to paragraph (5) of subdivision (b) in excess of 55 percent
used to calculate concentration grants shall not exceed the
percentage of unduplicated pupils calculated pursuant to paragraph
(5) of subdivision (b) in excess of 55 percent of the school district
in which the charter school is physically located. For a charter
school physically located in more than one school district, the
charter school’s percentage of unduplicated pupils calculated
pursuant to paragraph (5) of subdivision (b) in excess of 55 percent
used to calculate concentration grants shall not exceed that of the
school district with the highest percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the school districts in which the charter school
has a school facility. The concentration grant shall be expended
in accordance with the regulations adopted pursuant to Section
42238.07.

(B) For purposes of this paragraph and subparagraph (A) of
paragraph (1) of subdivision (f) of Section 42238.03, a charter
school shall report its physical location to the department under
timeframes established by the department. For a charter school
authorized by a school district, the department shall include the
authorizing school district in the department’s determination of
physical location. For a charter school authorized on appeal
pursuant to subdivision (j) of Section 47605, the department shall
include the sponsoring school district in the department’s
determination of physical location. The reported physical location
of the charter school shall be considered final as of the second
principal apportionment for that fiscal year. For purposes of this
paragraph, the percentage of unduplicated pupils of the school
district associated with the charter school pursuant to subparagraph
(A) shall be considered final as of the second principal
apportionment for that fiscal year.

begin insert

(3) (A) A school district or charter school shall receive 50
percent of the concentration grant add-on calculated pursuant to
paragraph (1) for a pupil redesignated as fluent English proficient
pursuant to Section 313 for the first fiscal year after the pupil has
been redesignated as fluent English proficient.

end insert begin insert

(B) A school district or charter school shall receive 25 percent
of the concentration grant add-on calculated pursuant to
paragraph (1) for a pupil redesignated as fluent English proficient
pursuant to Section 313 for the second fiscal year after the pupil
has been redesignated as fluent English proficient.

end insert

(g) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2, for the 2012-13 fiscal year, as that article read on
January 1, 2013. A school district or charter school shall not receive
a total funding amount from this add-on greater than the total
amount of funding received by the school district or charter school
from that program in the 2012-13 fiscal year. The amount
computed pursuant to this subdivision shall reflect the reduction
specified in paragraph (2) of subdivision (a) of Section 42238.03.

(h) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Home-to-School Transportation program, as set forth in
former Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5, former Article 10 (commencing with Section 41850)
of Chapter 5, and the Small School District Transportation
program, as set forth in former Article 4.5 (commencing with
Section 42290), for the 2012-13 fiscal year. A school district or
charter school shall not receive a total funding amount from this
add-on greater than the total amount received by the school district
or charter school for those programs in the 2012-13 fiscal year.
The amount computed pursuant to this subdivision shall reflect
the reduction specified in paragraph (2) of subdivision (a) of
Section 42238.03.

(i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:

(A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily
attendance computed pursuant to paragraph (2) of subdivision (a)
of Section 42238.05 for purposes of the computation specified in
subdivision (d).

(B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.

(2) The amount computed pursuant to Article 4 (commencing
with Section 42280) shall be added to the amount computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (d), as
multiplied by subparagraph (A) or (B) of paragraph (1), as
appropriate.

(j) The Superintendent shall adjust the sum of each school
district’s or charter school’s amount determined in subdivisions
(g) to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:

(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code.

(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.

(2) The amount, if any, received pursuant to Part 18.5
(commencing with Section 38101) of Division 2 of the Revenue
and Taxation Code.

(3) The amount, if any, received pursuant to Chapter 3
(commencing with Section 16140) of Part 1 of Division 4 of Title
2 of the Government Code.

(4) Prior years’ taxes and taxes on the unsecured roll.

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(8) Revenue received pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the California
Constitution.

(k) A school district shall annually transfer to each of its charter
schools funding in lieu of property taxes pursuant to Section 47635.

(l) (1) Nothing in this section shall be interpreted to authorize
a school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law pursuant to paragraph
(2) or pursuant to an agreement between the charter school and its
chartering authority.

(2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13
fiscal year pursuant to paragraph (2) of subdivision (b) of Section
42606, as that section read on January 1, 2013, may annually
redirect for another purpose a percentage of the amount of the
funding received on behalf of that charter school. The percentage
of funding that may be redirected shall be determined pursuant to
the following computation:

(A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.

(ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.

(iii) Subtract the amount computed pursuant to paragraphs (1)
to (3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision begin delete (i)
of Section 42238.02. end delete begin insert (i). end insert

(iv) Compute a percentage by dividing the sum of the amounts
computed begin insert pursuant end insert to clauses (i) and (ii) by the amount computed
pursuant to clause (iii).

(B) Multiply the percentage computed pursuant to subparagraph
(A) by the amount of funding the school district received on behalf
of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013.

(C) The maximum amount that may be redirected shall be the
lesser of the amount of funding the school district received on
behalf of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or the amount computed pursuant to subparagraph
(B).

(3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide each
affiliated charter school schoolsite with no less than the amount
of funding the schoolsite received pursuant to the charter school
block grant in the 2012-13 fiscal year.

(m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to, this
section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation
Code, shall be made exclusive of the revenue received pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section
36 of Article XIII of the California Constitution.

(n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division begin delete 4 of Title 2. end delete begin insert 4. end insert

(o) A school district that does not receive an apportionment of
state funds pursuant to this section, as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of subparagraph (A) of paragraph (2) of subdivision
(e) of Section 42238.03, shall be considered a “basic aid school
district” or an “excess tax entity.”

begin insert

(p) This section shall become inoperative upon the adoption of
statewide pupil redesignation standards after January 1, 2015, by
statute or regulation, or on July 1, 2018, whichever occurs first,
and, as of January 1, 2019, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2019,
deletes or extends the conditions on which it becomes inoperative
and is repealed.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 42238.02 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 42238.02. end insert   

(a) The amount computed pursuant to this section
shall be known as the school district and charter school local
control funding formula.

(b) (1) For purposes of this section “unduplicated pupil” means
a pupil enrolled in a school district or a charter school who is
classified as an English learner, eligible for a free or reduced-price
meal, or is a foster youth. A pupil shall be counted only once for
purposes of this section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and
is classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

(2) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a school
district or charter school shall annually submit its enrolled free
and reduced-price meal eligibility, foster youth, and English
learner pupil-level records for enrolled pupils to the Superintendent
using the California Longitudinal Pupil Achievement Data System.

(3) (A) Commencing with the 2013-14 fiscal year, a county
office of education shall review and validate certified aggregate
English learner, foster youth, and free or reduced-price meal
eligible pupil data for school districts and charter schools under
its jurisdiction to ensure the data is reported accurately. The
Superintendent shall provide each county office of education with
appropriate access to school district and charter school data
reports in the California Longitudinal Pupil Achievement Data
System for purposes of ensuring data reporting accuracy.

(B) The Controller shall include the instructions necessary to
enforce paragraph (2) in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the English learner, foster
youth, and free or reduced-price meal eligible pupil counts are
consistent with the school district’s or charter school’s English
learner, foster youth, and free or reduced-price meal eligible pupil
records.

(4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal
Pupil Achievement Data System. Under timeframes and procedures
established by the Superintendent, school districts and charter
schools may review and revise their submitted data on English
learner, foster youth, and free or reduced-price meal eligible pupil
counts to ensure the accuracy of data reflected in the California
Longitudinal Pupil Achievement Data System.

(5) The Superintendent shall annually compute the percentage
of unduplicated pupils for each school district and charter school
by dividing the enrollment of unduplicated pupils in a school
district or charter school by the total enrollment in that school
district or charter school pursuant to all of the following:

(A) For the 2013-14 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 fiscal year by the sum of the total pupil
enrollment for the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
total pupil enrollment for the 2013-14 and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of unduplicated pupils for the current fiscal year
and the two prior fiscal years by the sum of the total pupil
enrollment for the current fiscal year and the two prior fiscal years.

(D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a school
district’s or charter school’s enrollment of unduplicated pupils
and total pupil enrollment in the 2014-15 fiscal year instead of
the enrollment of unduplicated pupils and total pupil enrollment
in the 2013-14 fiscal year if doing so would yield an overall
greater percentage of unduplicated pupils.

(ii) It is the intent of the Legislature to review each school
district and charter school’s enrollment of unduplicated pupils for
the 2013-14 and 2014-15 fiscal years and provide one-time
funding, if necessary, for a school district or charter school with
higher enrollment of unduplicated pupils in the 2014-15 fiscal
year as compared to the 2013-14 fiscal year.

(6) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This paragraph does not apply to a change that is the result of an
audit that has been appealed pursuant to Section 41344.

(c) Commencing with the 2013-14 fiscal year and each fiscal
year thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.

(d) The Superintendent shall compute a grade span adjusted
base grant equal to the total of the following amounts:

(1) For the 2013-14 fiscal year, a base grant of:

(A) Six thousand eight hundred forty-five dollars ($6,845) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.

(B) Six thousand nine hundred forty-seven dollars ($6,947) for
average daily attendance in grades 4 to 6, inclusive.

(C) Seven thousand one hundred fifty-four dollars ($7,154) for
average daily attendance in grades 7 and 8.

(D) Eight thousand two hundred eighty-nine dollars ($8,289)
for average daily attendance in grades 9 to 12, inclusive.

(2) In each year the grade span adjusted base grants in
paragraph (1) shall be adjusted by the percentage change in the
annual average value of the Implicit Price Deflator for State and
Local Government Purchases of Goods and Services for the United
States, as published by the United States Department of Commerce
for the 12-month period ending in the third quarter of the prior
fiscal year. This percentage change shall be determined using the
latest data available as of May 10 of the preceding fiscal year
compared with the annual average value of the same deflator for
the 12-month period ending in the third quarter of the second
preceding fiscal year, using the latest data available as of May 10
of the preceding fiscal year, as reported by the Department of
Finance.

(3) (A) The Superintendent shall compute an additional
adjustment to the kindergarten and grades 1 to 3, inclusive, base
grant as adjusted for inflation pursuant to paragraph (2) equal to
10.4 percent. The additional grant shall be calculated by
multiplying the kindergarten and grades 1 to 3, inclusive, base
grant, as adjusted by paragraph (2), by 10.4 percent.

(B) Until paragraph (4) of subdivision (b) of Section 42238.03
is effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an
average class enrollment of not more than 24 pupils for each
schoolsite in kindergarten and grades 1 to 3, inclusive, unless a
collectively bargained alternative annual average class enrollment
for each schoolsite in those grades is agreed to by the school
district, pursuant to the following calculation:

(i) Determine a school district’s average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, in
the prior year. For the 2013-14 fiscal year, this amount shall be
the average class enrollment for each schoolsite for kindergarten
and grades 1 to 3, inclusive, in the 2012-13 fiscal year.

(ii) Determine a school district’s proportion of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

(iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.

(iv) Determine the difference between the amount computed
pursuant to clause (i) and an average class enrollment of not more
than 24 pupils.

(v) Calculate a current year average class enrollment adjustment
for each schoolsite for kindergarten and grades 1 to 3, inclusive,
equal to the adjustment calculated in clause (iv) multiplied by the
percentage determined pursuant to clause (iii).

(C) School districts that have an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
24 pupils or less for each schoolsite in the 2012-13 fiscal year,
shall be exempt from the requirements of subparagraph (B) so
long as the school district continues to maintain an average class
enrollment for each schoolsite for kindergarten and grades 1 to
3, inclusive, of not more than 24 pupils, unless a collectively
bargained alternative ratio is agreed to by the school district.

(D) Upon full implementation of the local control funding
formula, as a condition of the receipt of funds in this paragraph,
all school districts shall maintain an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
not more than 24 pupils for each schoolsite in kindergarten and
grades 1 to 3, inclusive, unless a collectively bargained alternative
ratio is agreed to by the school district.

(E) The average class enrollment requirement for each
schoolsite for kindergarten and grades 1 to 3, inclusive, established
pursuant to this paragraph shall not be subject to waiver by the
state board pursuant to Section 33050 or by the Superintendent.

(F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to
3, inclusive, exceeds 24 pupils, or an alternative average class
enrollment for each schoolsite pursuant to a collectively bargained
alternative ratio. The procedures for determining average class
enrollment for each schoolsite shall include criteria for employing
sampling.

(4) The Superintendent shall compute an additional adjustment
to the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.6 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6
percent.

(e) (1) The Superintendent shall compute a supplemental grant
add-on equal to 20 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of
subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of
subdivision (d), for each school district’s or charter school’s
percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b). The supplemental grant shall be
calculated by multiplying the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1), as adjusted
by paragraphs (2) to (4), inclusive, of subdivision (d), by 20 percent
and by the percentage of unduplicated pupils calculated pursuant
to paragraph (5) of subdivision (b) in that school district or charter
school. The supplemental grant shall be expended in accordance
with the regulations adopted pursuant to Section 42238.07.

(2) If a pupil has been redesignated as fluent English proficient
pursuant to Section 313 before this section is operative and a
school district or charter school has not already received, for the
first fiscal year after the pupil has been redesignated as fluent
English proficient, 50 percent of, and for the second fiscal year
after the pupil has been redesignated as fluent English proficient,
25 percent of, the supplemental grant calculated pursuant to
paragraph (1), the school district or charter school shall receive
the applicable percentage of the supplemental grant calculated
pursuant to paragraph (1) for the pupil redesignated as fluent
English proficient until it has received the applicable percentage
of the supplemental grant for the applicable fiscal year.

(f) (1) The Superintendent shall compute a concentration grant
add-on equal to 50 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of
subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of
subdivision (d), for each school district’s or charter school’s
percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent of the
school district’s or charter school’s total enrollment. The
concentration grant shall be calculated by multiplying the base
grants as specified in subparagraphs (A) to (D), inclusive, of
paragraph (1) of subdivision (d), as adjusted by paragraphs (2)
to (4), inclusive, of subdivision (d), by 50 percent and by the
percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent of the total
enrollment in that school district or charter school.

(2) (A) For a charter school physically located in only one
school district, the percentage of unduplicated pupils calculated
pursuant to paragraph (5) of subdivision (b) in excess of 55 percent
used to calculate concentration grants shall not exceed the
percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent of the
school district in which the charter school is physically located.
For a charter school physically located in more than one school
district, the charter school’s percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent used to calculate concentration grants shall not
exceed that of the school district with the highest percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school districts in
which the charter school has a school facility. The concentration
grant shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(B) For purposes of this paragraph and subparagraph (A) of
paragraph (1) of subdivision (f) of Section 42238.03, a charter
school shall report its physical location to the department under
timeframes established by the department. For a charter school
authorized by a school district, the department shall include the
authorizing school district in the department’s determination of
physical location. For a charter school authorized on appeal
pursuant to subdivision (j) of Section 47605, the department shall
include the sponsoring school district in the department’s
determination of physical location. The reported physical location
of the charter school shall be considered final as of the second
principal apportionment for that fiscal year. For purposes of this
paragraph, the percentage of unduplicated pupils of the school
district associated with the charter school pursuant to
subparagraph (A) shall be considered final as of the second
principal apportionment for that fiscal year.

(3) If a pupil has been redesignated as fluent English proficient
pursuant to Section 313 before this section is operative and a
school district or charter school has not already received, for the
first fiscal year after the pupil has been redesignated as fluent
English proficient, 50 percent of, and for the second fiscal year
after the pupil has been redesignated as fluent English proficient,
25 percent of, the concentration grant calculated pursuant to
paragraph (1), the school district or charter school shall receive
the applicable percentage of the concentration grant calculated
pursuant to paragraph (1) for the pupil redesignated as fluent
English proficient until it has received the applicable percentage
of the concentration grant for the applicable fiscal year.

(g) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2, for the 2012-13 fiscal year, as that article read on
January 1, 2013. A school district or charter school shall not
receive a total funding amount from this add-on greater than the
total amount of funding received by the school district or charter
school from that program in the 2012-13 fiscal year. The amount
computed pursuant to this subdivision shall reflect the reduction
specified in paragraph (2) of subdivision (a) of Section 42238.03.

(h) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Home-to-School Transportation program, as set forth in
former Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5, former Article 10 (commencing with Section 41850)
of Chapter 5, and the Small School District Transportation
program, as set forth in former Article 4.5 (commencing with
Section 42290), for the 2012-13 fiscal year. A school district or
charter school shall not receive a total funding amount from this
add-on greater than the total amount received by the school district
or charter school for those programs in the 2012-13 fiscal year.
The amount computed pursuant to this subdivision shall reflect
the reduction specified in paragraph (2) of subdivision (a) of
Section 42238.03.

(i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:

(A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily
attendance computed pursuant to paragraph (2) of subdivision (a)
of Section 42238.05 for purposes of the computation specified in
subdivision (d).

(B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.

(2) The amount computed pursuant to Article 4 (commencing
with Section 42280) shall be added to the amount computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (d), as
multiplied by subparagraph (A) or (B) of paragraph (1), as
appropriate.

(j) The Superintendent shall adjust the sum of each school
district’s or charter school’s amount determined in subdivisions
(g) to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:

(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code.

(B) For charter schools, the in-lieu property tax amount
provided to a charter school pursuant to Section 47635.

(2) The amount, if any, received pursuant to Part 18.5
(commencing with Section 38101) of Division 2 of the Revenue
and Taxation Code.

(3) The amount, if any, received pursuant to Chapter 3
(commencing with Section 16140) of Part 1 of Division 4 of Title
2 of the Government Code.

(4) Prior years’ taxes and taxes on the unsecured roll.

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of
Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(8) Revenue received pursuant to subparagraph (B) of
paragraph (3) of subdivision (e) of Section 36 of Article XIII of
the California Constitution.

(k) A school district shall annually transfer to each of its charter
schools funding in lieu of property taxes pursuant to Section 47635.

(l) (1) Nothing in this section shall be interpreted to authorize
a school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law pursuant to paragraph
(2) or pursuant to an agreement between the charter school and
its chartering authority.

(2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13
fiscal year pursuant to paragraph (2) of subdivision (b) of Section
42606, as that section read on January 1, 2013, may annually
redirect for another purpose a percentage of the amount of the
funding received on behalf of that charter school. The percentage
of funding that may be redirected shall be determined pursuant to
the following computation:

(A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.

(ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.

(iii) Subtract the amount computed pursuant to paragraphs (1)
to (3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision (i).

(iv) Compute a percentage by dividing the sum of the amounts
computed pursuant to clauses (i) and (ii) by the amount computed
pursuant to clause (iii).

(B) Multiply the percentage computed pursuant to subparagraph
(A) by the amount of funding the school district received on behalf
of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013.

(C) The maximum amount that may be redirected shall be the
lesser of the amount of funding the school district received on
behalf of the charter school in the 2012-13 fiscal year pursuant
to paragraph (2) of subdivision (b) of Section 42605, Section
42606, and subdivision (b) of Section 47634.1, as those sections
read on January 1, 2013, or the amount computed pursuant to
subparagraph (B).

(3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide
each affiliated charter school schoolsite with no less than the
amount of funding the schoolsite received pursuant to the charter
school block grant in the 2012-13 fiscal year.

(m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to,
this section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation
Code, shall be made exclusive of the revenue received pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section
36 of Article XIII of the California Constitution.

(n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4.

(o) A school district that does not receive an apportionment of
state funds pursuant to this section, as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of subparagraph (A) of paragraph (2) of subdivision
(e) of Section 42238.03, shall be considered a “basic aid school
district” or an “excess tax entity.”

(p) This section shall become operative upon the adoption of
statewide pupil redesignation standards after January 1, 2015, by
statute or regulation, or on July 1, 2018, whichever occurs first.

end insert

SEC. 5.  

Section 52060 of the Education Code is amended to
read:

52060.  

(a) On or before July 1, 2014, the governing board of
each school district shall adopt a local control and accountability
plan using a template adopted by the state board.

(b) A local control and accountability plan adopted by the
governing board of a school district shall be effective for a period
of three years, and shall be updated on or before July 1 of each
year.

(c) A local control and accountability plan adopted by the
governing board of a school district shall include, for the school
district and each school within the school district, both of the
following:

(1) A description of the annual goals, for all begin delete pupils end delete begin insert pupils, pupils
redesignated as fluent English proficient, end insert and each subgroup of
pupils identified pursuant to Section 52052, to be achieved for
each of the state priorities identified in subdivision (d) and for any
additional local priorities identified by the governing board of the
school district. For purposes of this article, a subgroup of pupils
identified pursuant to Section 52052 shall be a numerically
significant pupil subgroup as specified in paragraphs (2) and (3)
of subdivision (a) of Section 52052.

(2) A description of the specific actions the school district will
take during each year of the local control and accountability plan
to achieve the goals identified in paragraph (1), including the
enumeration of any specific actions necessary for that year to
correct any deficiencies in regard to the state priorities listed in
paragraph (1) of subdivision (d). The specific actions shall not
supersede the provisions of existing local collective bargaining
agreements within the jurisdiction of the school district.

(d) All of the following are state priorities:

(1) The degree to which the teachers of the school district are
appropriately assigned in accordance with Section 44258.9, and
fully credentialed in the subject areas, and, for the pupils they are
teaching, every pupil in the school district has sufficient access to
the standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.

(2) (A) Implementation of the academic content and
performance standards adopted by the state board, including how
the programs and services will enable English learners to access
the common core academic content standards adopted pursuant to
Section 60605.8 and the English language development standards
adopted pursuant to Section 60811.3, as that section read on June
30, 2013, for purposes of gaining academic content knowledge
and English language proficiency.

(B) The school district shall identify in the local control and
accountability plan required by this section any specialized
programs or services provided to pupils redesignated as fluent
English proficient in order for them to maintain proficiency in
English and access the common core academic content standards
adopted pursuant to Section 60605.8 and a broad course of study
that includes all of the subject areas described in Section 51210
and subdivisions (a) to (i), inclusive, of Section 51220, as
applicable.

(3) Parental involvement, including efforts the school district
makes to seek parent input in making decisions for the school
district and each individual schoolsite, and including how the
school district will promote parental participation in programs for
unduplicated pupils and individuals with exceptional needs.

(4) Pupil achievement, as measured by all of the following, as
applicable:

(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.

(B) The Academic Performance Index, as described in Section
52052.

(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career technical
education sequences or programs of study that align with state
board-approved career technical educational standards and
frameworks, including, but not limited to, those described in
subdivision (a) of Section 52302, subdivision (a) of Section
52372.5, or paragraph (2) of subdivision (e) of Section 54692.

(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of
English proficiency, as certified by the state board.

(E) The English learner reclassification rate.

(F) The percentage of pupils who have passed an advanced
placement examination with a score of three or higher.

(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program,
as described in Chapter 6 (commencing with Section 99300) of
Part 65 of Division 14 of Title 3, or any subsequent assessment of
college preparedness.

(5) Pupil engagement, as measured by all of the following, as
applicable:

(A) School attendance rates.

(B) Chronic absenteeism rates.

(C) Middle school dropout rates, as described in paragraph (3)
of subdivision (a) of Section 52052.1.

(D) High school dropout rates.

(E) High school graduation rates.

(6) School climate, as measured by all of the following, as
applicable:

(A) Pupil suspension rates.

(B) Pupil expulsion rates.

(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.

(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive,
of Section 51220, as applicable, including the programs and
services developed and provided to unduplicated pupils and
individuals with exceptional needs, and the program and services
that are provided to benefit these pupils as a result of the funding
received pursuant to Section 42238.02, as implemented by Section
42238.03.

(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

(e) For purposes of the descriptions required by subdivision (c),
the governing board of a school district may consider qualitative
information, including, but not limited to, findings that result from
school quality reviews conducted pursuant to subparagraph (J) of
paragraph (4) of subdivision (a) of Section 52052 or any other
reviews.

(f) To the extent practicable, data reported in a local control and
accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.

(g) The governing board of a school district shall consult with
teachers, principals, administrators, other school personnel, local
bargaining units of the school district, parents, and pupils in
developing a local control and accountability plan.

(h) A school district may identify local priorities, goals in regard
to the local priorities, and the method for measuring the school
district’s progress toward achieving those goals.

SEC. 6.  

Section 52066 of the Education Code is amended to
read:

52066.  

(a) On or before July 1, 2014, each county
superintendent of schools shall develop, and present to the county
board of education for adoption, a local control and accountability
plan using a template adopted by the state board.

(b) A local control and accountability plan adopted by the county
board of education shall be effective for a period of three years,
and shall be updated on or before July 1 of each year.

(c) A local control and accountability plan adopted by the county
board of education shall include, for each school or program
operated by the county superintendent of schools, both of the
following:

(1) A description of the annual goals, for all begin delete pupils end delete begin insert pupils, pupils
redesignated as fluent English proficient, end insert and each subgroup of
pupils identified pursuant to Section 52052, to be achieved for
each of the state priorities identified in subdivision (d), as
applicable to the pupils served, and for any additional local
priorities identified by the county board of education.

(2) A description of the specific actions the county
superintendent of schools will take during each year of the local
control and accountability plan to achieve the goals identified in
paragraph (1), including the enumeration of any specific actions
necessary for that year to correct any deficiencies in regard to the
state priorities listed in paragraph (1) of subdivision (d). The
specific actions shall not supersede the provisions of existing local
collective bargaining agreements within the jurisdiction of the
county superintendent of schools.

(d) All of the following are state priorities:

(1) The degree to which the teachers in the schools or programs
operated by the county superintendent of schools are appropriately
assigned in accordance with Section 44258.9 and fully credentialed
in the subject areas, and, for the pupils they are teaching, every
pupil in the schools or programs operated by the county
superintendent of schools has sufficient access to the
standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.

(2) (A) Implementation of the academic content and
performance standards adopted by the state board, including how
the programs and services will enable English learners to access
the common core academic content standards adopted pursuant to
Section 60605.8 and the English language development standards
adopted pursuant to Section 60811.3, as that section read on June
30, 2013, for purposes of gaining academic content knowledge
and English language proficiency.

(B) The county superintendent of schools shall identify in the
local control and accountability plan required by this section any
specialized programs or services provided to pupils redesignated
as fluent English proficient in order for them to maintain
proficiency in English and access the common core academic
content standards adopted pursuant to Section 60605.8 and a broad
course of study that includes all of the subject areas described in
Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

(3) Parental involvement, including efforts the county
superintendent of schools makes to seek parent input in making
decisions for each individual schoolsite and program operated by
a county superintendent of schools, and including how the county
superintendent of schools will promote parental participation in
programs for unduplicated pupils and individuals with exceptional
needs.

(4) Pupil achievement, as measured by all of the following, as
applicable:

(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.

(B) The Academic Performance Index, as described in Section
52052.

(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career technical
education sequences or programs of study that align with state
board-approved career technical education standards and
frameworks, including, but not limited to, those described in
subdivision (a) of Section 52302, subdivision (a) of Section
52372.5, or paragraph (2) of subdivision (e) of Section 54692.

(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of
English proficiency, as certified by the state board.

(E) The English learner reclassification rate.

(F) The percentage of pupils who have passed an advanced
placement examination with a score of three or higher.

(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program,
as described in Chapter 6 (commencing with Section 99300) of
Part 65 of Division 14 of Title 3, or any subsequent assessment of
college preparedness.

(5) Pupil engagement, as measured by all of the following, as
applicable:

(A) School attendance rates.

(B) Chronic absenteeism rates.

(C) Middle school dropout rates, as described in paragraph (3)
of subdivision (a) of Section 52052.1.

(D) High school dropout rates.

(E) High school graduation rates.

(6) School climate, as measured by all of the following, as
applicable:

(A) Pupil suspension rates.

(B) Pupil expulsion rates.

(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.

(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive,
of Section 51220, as applicable, including the programs and
services developed and provided to unduplicated pupils and
individuals with exceptional needs, and the program and services
that are provided to benefit these pupils as a result of the funding
received pursuant to Section 42238.02, as implemented by Section
42238.03.

(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

(9) How the county superintendent of schools will coordinate
instruction of expelled pupils pursuant to Section 48926.

(10) How the county superintendent of schools will coordinate
services for foster children, including, but not limited to, all of the
following:

(A) Working with the county child welfare agency to minimize
changes in school placement.

(B) Providing education-related information to the county child
welfare agency to assist the county child welfare agency in the
delivery of services to foster children, including, but not limited
to, educational status and progress information that is required to
be included in court reports.

(C) Responding to requests from the juvenile court for
information and working with the juvenile court to ensure the
delivery and coordination of necessary educational services.

(D) Establishing a mechanism for the efficient expeditious
transfer of health and education records and the health and
education passport.

(e) For purposes of the descriptions required by subdivision (c),
the county board of education may consider qualitative information,
including, but not limited to, findings that result from school quality
reviews conducted pursuant to subparagraph (J) of paragraph (4)
of subdivision (a) of Section 52052 or any other reviews.

(f) To the extent practicable, data reported in a local control and
accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.

(g) The county superintendent of schools shall consult with
teachers, principals, administrators, other school personnel, local
bargaining units of the county office of education, parents, and
pupils in developing a local control and accountability plan.

(h) A county board of education may identify local priorities,
goals in regard to the local priorities, and the method for measuring
the county superintendent of schools’ progress toward achieving
those goals.

SEC. 7.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.