BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1946
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1946 (Chesbro) - As Introduced:  May 1, 2014 

          Policy Committee:                              EducationVote:7-0

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

           SUMMARY  

          This bill expands the definition of a necessary small high  
          school to include a high school maintained by a unified school  
          district as the only comprehensive high school if the high  
          school has an average daily attendance (ADA) of less than 268  
          pupils and the school district has 50 or fewer pupils per square  
          mile of school district territory, as measured by enrollment.  

           FISCAL EFFECT  

          Annual GF Proposition 98 costs of roughly $120,000 to $350,000  
          to provide a higher level of funding for the seven affected  
          school districts.  Costs at full implementation of the Local  
          Control Funding Formula are roughly $1 million to $3 million. 

          Looking at revenue projections over time, all districts are  
          projected to see increases in overall funding. For example,  
          Princeton Joint Unified School District is projected to see a  
          22% increase in funding from 2013-14 to 2016-17.  (If the  
          district receives the Necessary Small School (NSS) adjustment,  
          the district's revenue would grow by 44%). 

           COMMENTS  

           Purpose  . Existing law provides differentiated funding for small,  
          geographically isolated schools. To qualify for NSS funding, a  
          school must be small (fewer than 97 ADA for elementary schools  
          and fewer than 287 ADA for high schools), be in a district with  
          fewer than 2,501 ADA, and be geographically isolated, as  
          measured by traveling distance to the next nearest school.  (The  
          distance requirement varies based on the size of the school's  
          ADA.) The NSS funding calculation is based on ADA and the number  








                                                                  AB 1946
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          of teachers employed, instead of ADA only.  This results in a  
          higher level of funding for those schools in recognition of the  
          higher cost of operating them.  

          Prior to the enactment of the Local Control Funding Formula  
          (LCFF), statute authorized some high schools to receive NSS  
          funding even if they did not meet the distance requirements, as  
          long as they were the only high schools maintained by their  
          district.  This bill reinstates a provision of law that allowed  
          these small high schools to receive NSS funding.

          According to the author's office, if this bill is not enacted  
          Alpaugh, Biggs, Ferndale, Los Molinos, Maricopa, Maxwell and  
          Princeton school districts will lose funding necessary to  
          maintain the operation of the only high school in that unified  
          school district, and will be forced to close the school and  
          implement other reductions that would impact their K-8 schools.   
          The affected districts argue that retaining NSS funding is  
          necessary not just to maintain the quality of programs currently  
          offered to their students, but to maintain the programs  
          themselves.
           
          Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081